The Halving event that created speculations passed very smoothly this Monday leaving behind the price in uncertainty. President Trump shares his thoughts on applying Negative Interest with US banks as of which bitcoin ranges at the $9000 area.
US President Donald trump Shared a Tweet saying that the US Should also apply tye Negative Interest Rates to banks, indicating an addon towards balancing the economy crises
“ As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!”
Negative Interest rate Policy(NIRP) is a Central bank employed tool which comes into effect when the nominal interest rates fall below 0%. As a result, the banks have to pay the Central bank in reverse for storing excess funds.
This Policy is eventually taken into effect to balance and boost the lending of funds to business and individuals in the time of Pandemics .
As A result of Fed fund futures falling to below zero percentage, the Central bank may applyu thos policy in June 2021. Prior to that Japan and Europe have applied these Policies, but ended up with bad results.
What Crypto Enthusiasts say about this Statement
In line with Trump’s tweet, Peter Schiff, CEO of Euro Pacific Capital responded to the tweet by Saying “ Negative rates are not a gift “ .
He added more to it by saying “ They are a transfer of wealth from savers to debtors. But the inflation created to make negative rates possible will hurt wage earners too, plus the overall economy will be less productive and living standards will be lower as a result.”
Like Peterschiff is among the Big Crypto enthusiasts, who recently questioned the Security of Bitcoin based loans Other crypto folks are also not in favor of this policy but this is said to affect the bitcoin and Crypto Market price jump as monetary Inflation activities come into power.