Have you heard about the new advertising for Bitcoin? It has been floating as one of the significant bank assets that encourage people to save their money more.
As per Bloomberg’s reports, the Bank of England has apparently become the latest central bank to discuss the negative rate. Let’s know a bit more details about this.
As per the sources, England’s bank had proper discussions with the bank regulators over the negative rates, which precisely indicated to mean lending institutions. Thus, individuals might pay to store their cash!
Why such a significant change all of a sudden? The possible reason is the impact of the epidemic that has clearly shaken the world right now. The impact on the economy is terrible, and the prospect that is taking the shape of Brexit. This can surely make or break the scenario. But the bank has left many options to choose from due to the unprecedented times as per the news.
Even though the policyholders had voted to keep the interest rates at the bare minimum of 0.1%, there was still a decent slide against the major currencies.
The advocates of Bitcoin who have come up have apparently seized on the troubles of the Bank of England. They have stated the allegation that such a policy might underestimate or undermine the reputation and fiat currency position.
This has resulted in a pretty major outrage on Twitter, as all of them came down to talk about this finally. There were various opinions that either went in favor of their decision or were contradictory. This is a major concern for people out there since paying just to store their money is simply not feasible for them. According to them, they are basically advertising bitcoin and are taking the stand in their favor.
As per the sources, England’s bank is specifically not liked by the people due to the bitcoin issue. Furthermore, the uNited Kingdom government is even bailing out of the banking sector in the year 2009. Even an article from the Times was attached to him to justify the fact stated by them. And now it was clearly evident that bitcoin would surely hold power and functionality as a hedge against fiat in the upcoming years. This is surely a great deal for the U.K.
This week, the United States Federal Reserve has put up queries about various plans and ventures to overshoot inflation targets. This process would weaken the U.S. dollar and likely boost safe havens such as gold and Bitcoin.
According to England’s bank, this could be pretty damaging to the economic condition of the United kingdom. The European central bank(ECB) has been in this phase before, but such a massive move would be the first time in the United Kingdom and thus is a matter of debate at the moment. But keeping everything aside, the final decision is yet to be taken and will surely be on the right side, keeping every possible aspect in mind.