Data suggests that some US citizens are possibly investing their $1200 COVID-19 stimulus package in cryptocurrencies.
Brian Armstrong, CEO of United States crypto exchange recently published a tweet, suggesting that a small portion of US citizens might be using their COVID-19 related stimulus granted by the US government to buy cryptocurrency. According to Armstrong, deposits and buys worth $1200 (which is exactly the stimulus amount granted) has increased by more than four times. It is being speculated that this data has been formulated from transaction trends in Coinbase.
Stimulus package amid the COVID-19 pandemic
The US government recently announced a $1200 stimulus package for Americans who might be facing tremendous financial hardship amid the COVID-19 outbreak, due to loss of jobs or extremely low income. As of now, most middle-class people in America do not have a steady source of income, as the government has closed down consumer-facing businesses for the time being. As many as $22 million Americans have filed for unemployment since the pandemic started.
Citizens have started receiving the stimulus, and the recent increase in the number of $1200 worth buys and deposits suggest that they are investing the relief fund in cryptocurrencies.
The Washington Post recently reported that low-income Americans who do not file tax returns also have the right to claim the package, and parents are eligible for an additional $500 per child. The demand for relief funds has been overwhelming, so much so, that many banks across the US are facing server issues and are being unable to handle bulk requests.
Amid the grave economic crisis, the US government recently allowed fintech giant PayPal to lend money to businesses in need. PayPal has also cut down its loan interest rates in order to help small businesses sustain and keep paying their employees. On the other hand, Square founder Jack Dorsey announced that it will enable citizens to claim their stimulus package via the Cash App so that the process can be made more streamlined and efficient for those who do not have access to banks.