Bitcoin (BTC) will attract more investment from British Banks and citizens after the Bank of England’s decision to impose a negative interest rate.
The Bank of England, which wants to protect its economy from the negative effects of the coronavirus, which has become a global epidemic, and the upcoming Brexit event, is considering applying a negative interest rate to encourage more spending.
Negative interest rates directly affect bank profitability as it is a practice that banks are obliged to store cash and in return transfer the costs to depositors holding cash in their bank accounts.
According to the September report of the Monetary Policy Board (MPC), the Bank of England and the Prudential Regulation Authority will cooperate on the feasibility assessments of negative bank interest in the 4th quarter of 2020.
The Bank of England, which is responsible for setting monetary policy to meet the government’s inflation targets, is currently aiming to keep that at 2%. However, with bank rates currently standing at 0.1%, the UK economy has little options for further growth.
In the MPC report in August, it was discussed how effective negative rates would be in light of the decline in global balance interest rates in a few years. Later, the Bank of England was informed in detail about the applicability.
The Bitcoin community sees this as another incentive for people to embrace cryptocurrencies as a store of value in order to evade governments’ fiat currency manipulation tactics.
“The Bank of England is considering applying negative rates. Gold stocks and Bitcoin will rise rapidly. ”
Bitcoin Is Seen As A Safe Harbor
Bitcoin’s adoption by users has increased dramatically in 2020 as more people see the leading cryptocurrency as a better value compared to fiat currency. Bitcoin has become an escape point, especially during high inflation caused by coronavirus fiscal measures.
Bitcoin has spent the last six months struggling hard to recover from the March 12 collapse, which was called the “Black Thursday” to the markets.
Another Bitcoin whale who sees Bitcoin as a safe haven, Michael Saylor, founder and CEO of MicroStrategy, said that despite the low market value and volatility, Bitcoin’s solid monetary policy protects it against inflation, so Bitcoin for its $ 425 million investment. i stated that they prefer.