Cryptocurrencies can solve the problem of interest rates of the Central Bank in 2020

 

Recently, Central banks of different countries are increasingly making statements regardingissuing your own cryptocurrencies.Thus, the Swedish central bank decided to issue its own electronic krona, while China announced its intention to begin testing an electronic yuan (CBDC) early next year.

Certainly, the authorities of different countries are interested in introducing technologies, but for the most part they are based on older economic models, and not on a decentralized one.

Thus, according to Bloomberg, interest rates cut in all directions this year may pose a serious threat to the global economy in the future.

The two main factors that concern investors andexperts, – these are trends in negative interest rates and quantitative easing. The negative interest rates that were introduced by the German bank earlier this year actually caused losses for fiat currency holders. Quantitative easing simply injects more money directly into the economy.

This has investors worried about the stability of the global economy, and turning to the cryptocurrency market as a hedge against traditional markets.