Many of the proposed use cases have not come to fruition yet, but recent macroeconomic developments have made crypto's ability to act as a hedge against central bank activity more clear than ever before.
Bitcoin & crypto get a boost as European banks continue to tout negative rates.
Even prior to the ongoing recession, central banks in Europe and in Asia, namely the European Central Bank and the Bank of Japan, had activated negative interest rates.
For a majority of the past few years, this policy has only applied to banks, but negative interest rates are quickly becoming an issue for consumers, boosting the investment case for Bitcoin and cryptocurrencies more broadly.
Those holding under 100,000 euros will not be subject to a fee, but those with over that amount and into the millions could be charged thousands of euros a month, just for holding their cash in a bank.
Commentators say that as more and more banks adopt this model to charge individuals for holding money at a bank, Bitcoin stands to benefit.
In a comment made earlier this month, Federal Reserve Chairman Jerome Powell explained that the "Committee's view on negative rates has not changed" in that they're still ignoring it as a monetary policy lever.
Powell may just be delaying the inevitable though: President Donald Trump published the tweet seen below on May 12, writing that the "USA should accept the 'gift'" of negative interest rates.
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the "GIFT".
"This brilliant feature of Bitcoin was designed by the anonymous creator of Bitcoin to protect its integrity by making it increasingly near and dear, a concept alien to the current thinking of central banks and governments."
Why crypto: holding money at Citibank costs hundreds of euros a month
gepubliceerd op May 31, 2020
by Cryptoslate | gepubliceerd op Coinage
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