As Bloomberg reported citing minutes of a meeting held Thursday, the Bank of England (BoE) has displayed the latest central bank to discuss negative interest rates.
Negative rates “would drive BTC adoption.”
As seen to the conference results, the BoE will enter negotiations with banking regulators over negative rates, which means lending institutions, and, therefore, clients must pay to store cash.
The cause is the influence of the COVID-19 lockdown on the economy and the rising prospect of Brexit, deal or no deal.
One analyst told the publication in light of the news that the bank is giving all options on the table due to raised risk.
The British pound slipped against major currencies Thursday, as policymakers additionally verified that they had voted to keep interest rates at 0.1% for the time being.
Bitcoin enthusiasts quickly seized on the BoE’s troubles, claiming that such a policy threatened both fiat currency’s reputation and position.
Tyler Winklevoss wrote on Twitter that while the Bank of England discussing negative interest rates. If they adopt that, they would be paying clients to borrow.
He added that nobody couldn’t buy a better advertisement for Bitcoin, but a client can take their money and go long bitcoin.
Veteran trader Tone Vays had similar thoughts.
He says he doesn’t think any bank would pay a client to borrow, but they will charge a customer to store/save their money. What more can a Bitcoin Hodler ask for! He said, replying to Winklevoss. Thanks to the Bank of England, it will help drive $BTC adoption.
The bank, bailouts, and Bitcoin
Others aimed at the interim interest rate decision.
Christopher Bendiksen, head of research at digital asset investment strategist Coinshares, tweeted that one of the most actual prices in our society is defined by vote.
You read that right. In 2020, 8 middle-aged men and one woman come collectively numerous times a year to manage credit prices. This will seem strangely archaic to our descendants.
The BoE is especially infamous in Bitcoin circles, the United Kingdom government clearing out the banking sector en masse on the eve of Bitcoin’s birth in 2009. An article from the national newspaper, The Times, was even involved in the Bitcoin genesis block.
More lately, central banks’ responses to COVID-19 have fed Bitcoin’s idea to function as a fence against fiat frequently.
This week, the United States Federal Reserve answered questions about its plans to overdo inflation targets. This process would undermine the U.S. dollar and give a likely further boost to safe havens such as gold and Bitcoin.
For its part, the BoE had stated that negative interest rates would be “degrading” to the U.K. economy as late as last month.
The European Central Bank, or ECB, has delivered negative rates since 2016, but such a move would be a historic first for the U.K.