Analysis: The essence of the Federal Reserve's new bond purchasing plan is still QE, and stablecoins are the most pressing currency quality issue currently.

According to ChainCatcher news, former Morgan Stanley NFA trader Jeff Park stated on the X platform that the Federal Reserve's recently announced reserve management-driven purchasing plan, while labeled 'reserve management', is essentially still QE, only upgraded from 'quantitative easing' to 'qualitative easing'.

Under a robust reserve system, reserves have perfect balance sheet elasticity due to 0% risk weight under LCR, far surpassing short-term government bonds. This also explains why the SLR rules were suddenly relaxed before Thanksgiving and why a $40 billion monthly purchasing plan was quickly announced within two weeks before the end of QT.

In short, short-term government bonds are 'near-money', while reserves are 'perfect money'. In addition, Jeff Park added that stablecoins are currently the most pressing 'currency quality' issue, which is why cryptocurrencies cannot possibly disappear.