If the Bank of England opts for a negative interest rate, bitcoin could see the benefit

Quick Take

1 minute read

• The leading cryptocurrency could see a bigger fanbase in the coming future from British banks and citizens in the United Kingdom following an announcement by the Bank of England saying that they are considering integrating negative interest rates.

• The Bank of England is hoping to encourage more spending in an attempt to boost its economy from the adverse effects of coronavirus and the upcoming Brexit event from the European Union.

The leading cryptocurrency could see a bigger fanbase in the coming future from British banks and citizens in the United Kingdom following an announcement by the Bank of England saying that they are considering integrating negative interest rates.

The Bank of England is hoping to encourage more spending in an attempt to boost its economy from the adverse effects of coronavirus and the upcoming Brexit event from the European Union.

An interesting thing about negative interest rates is that it will affect the profitability of banks as they are charged to store cash and intern transfer the costs to depositors holding cash in numerous different bank accounts.

A report was released recently by the monetary policy committee and their September report stating that the Bank of England and the Prudential regulation authority will be collaborating on the feasibility considerations of a negative bank rate in the fourth quarter of this year.

In the report the month prior, the committee highlighted numerous topics in the effectiveness of the negative rates which came off the back of the decline in global equilibrium interest rates over numerous years.

“Subsequently, the MPC had been briefed on the Bank of England’s plans to explore how a negative Bank Rate could be implemented effectively, should the outlook for inflation and output warrant it at some point during this period of low equilibrium rates.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.