The Bank of England said on Thursday it would buy more than £ 150 billion in government bonds in an attempt to revive an economy as the country enters a second period of restrictions on account of Covid-19.
The move would help to create market demand and reduce borrowing costs for the government. This year, as countries around the world are recovering from the negative effects of coronavirus, governments have taken action to repurchase billions of dollars in bonds using new capital, a process popularly known as "quantitative easing."
The UK government has already acquired more than £ 200 billion in bonds this year. The country's debt has also increased dramatically: reaching over £ 2 trillion. In the meantime, to further serve its citizens, the UK has also announced an extension of its license program - ensuring payment of up to 80% of the salaries of 9 million people who integrate in various sectors. This is expected to cost the public safes another £ 25 billion.
The current economic scenario is very reminiscent of that of 2008, where excessive quantitative easing and printing of money ended up stimulating the creation of Bitcoin. The asset is not disappointing and has already accumulated an increase of more than 100% since the beginning of the year, being traded today close to $ 15,500 per unit.