Jul 1, 2022

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

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

Recently, central banks of different countries are increasingly making statements regarding issuing your own cryptocurrencies. So, the central bank of Sweden decided to issue its own electronic crown, while China announced its intention to begin testing the electronic renminbi (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.

Two main factors that concern investors andexperts - this is a trend of negative interest rates and quantitative easing. The negative interest rates that were introduced by the German bank earlier this year actually caused losses to the owners of fiat currencies. Quantitative easing just pours more money directly into the economy.

This makes investors worry about the stability of the global economy, and turn to the cryptocurrency market as a hedge against traditional markets.