The world of Bitcoin and cryptocurrency are growing each year. However, something to always have in mind is the regulation around these coins and the fiat markets which they are trying to innovate and compete with. For instance, crypto is popular right now (in 2020) because of the negative interest rates activated by the European Central Bank and the Bank of Japan.
As we can see from the latest cryptocurrencies news, the policy of banks has been shifted in Europe and Asia. The European Central Bank and the Bank of Japan had activated negative interest rates. These rates are quickly becoming an issue for consumers, boosting the investment case of Bitcoin and cryptocurrencies more broadly.
The CEO of one crypto asset startup named Securitize, Carlos Domingo, recently spoke and shared an image (presented below) which shows that he recently received notice that Citi International will be increasing the fee that it charges individuals for holding Euros.
Citibank is informing me that they are going to start charging me to keep my money with them. Shocking. pic.twitter.com/2m1YYD1jei
— Carlos Domingo (@carlosdomingo) May 29, 2020
In that manner, those holding under 100,000 Euros will not be subject to a fee. However, 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.
In this manner, we can see that people holding under 100,000 Euros will not be subject to a fee. However, the ones with over that amount and into the millions could be charged thousands of euros per month just for holding their cash in a bank.
In contrast to this, commentators say that crypto is popular now and as more and more banks adopt negative interest models like these, Bitcoin stands to benefit. Meanwhile, the Bitcoin news now show that the price of BTC is near $9,700 and could attempt to break the $10,000 levels in the next few days.
Even some crypto investment firms commented on this interest rate. One of them was Stack, which shared their thoughts about the negative interest rates in a May 14 report, stating:
“The uncertainties prevalent in the traditional markets have prompt investors to turn their attention towards alternatives, with a significant one being Bitcoin.”
Meanwhile, the US President Donald Trump earlier this month shared a tweet about the negative interest rates and how “USA should accept the ‘gift'”.
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!
— Donald J. Trump (@realDonaldTrump) May 12, 2020
What is evident right now is the attention that Bitcoin and crypto are getting. Overall, crypto is popular now and we should not be surprised seeing big money entering this market.
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