The Federal Reserve will likely take no decisive actions on negative interests rates in the nearest future paving the way for cryptos.
Cryptocurrencies as an alternative to traditional banking. The global strategist at Wells Fargo Gary Shollsberg told CNBC that the US Fed will not adopt negative interest rate in the nearest future. And this contradicts the recent statements made by President Trump.
“The Federal Reserve is making necessary efforts to support liquidity”. Still the negative interest rates are currently implausible. Europe has already partlially implemented this measure with mixed results, and Shollsberg claims that there are too many possible ‘unintended consequences’. In fact, it would have meant the Fed had started to charge commerce banks for money storage. Nevertheless, this ‘fee’ will likely apply to consumers as well.
If negative interest rates become ‘the new reality’ Bitcoin will be the appropriate hedge tool and the catalyst for users to discontinue the use of bank services.
Now, when the industry has undergone the third halving, BTC has a lower inflation rate than printed currencies. Currently it is half of the average world level, with the annual issuance of 1.8%.