CoinCorner CEO Danny Scott on Looming Negative Interest Rates for the UK

CryptoMode Negative Interest Rates UK

Negative interest rates have become the favorite one-trick pony of central banks around the world. Bank of England is the latest institution to explore this option. For now, it merely “inquires”, but it is evident this shift will be inevitable. 

Negative Interest Rates Will Come to the UK

It is safe to assume the days of earning money with a savings account are over. No financial institution can offer positive interest rates for an extended period of time. Slowly but surely, they will all float into negative territory, as that is the global norm. Even Bank of England acknowledges something will need to change, albeit not necessarily for the better.

In a recent inquiry sent out to other banks, the institution wants  to know if these banks are “ready”. More specifically, this seems to confirm the switch to negative interest rates is imminent. Not entirely surprising, given everything that has been going on globally. The global economy is in shambles, and there is no real point in denying it. 

CoinCorner CEO Danny Scott comments:

“As people and companies look for alternative places to keep their money rather than losing value in a negative interest rate account, Bitcoin is becoming more attractive. In the last few weeks, we’ve seen global public companies purchasing substantial amounts of Bitcoin to hold on their balance sheet as a hedge against fiat. MicroStrategy purchased $425 million and Square purchased $50 million. At CoinCorner, we already hold Bitcoin on our balance sheet to avoid having too much exposure to fiat, so it’s clear that this is just beginning. “

Safe havens have performed rather well throughout 2020. Not just Bitcoin, but also precious metals such as gold, silver, and platinum. Demand for these assets will keep rising in the months and years to come. 

What is Bank of England Planning?

As is often the case when an inquiry occurs, there are plenty of questions. For now, it seems unclear if and when negative interest rates will be introduced. In March of 2020, the rates were cut to 0.1%, a historic low. Going even lower is certainly possible, and perhaps even necessary. 

One also has to keep in mind hat British banks don’t have a good reputation. More precisely, multiple institutions have experienced technical issues in recent years. Most problems were sorted within a day. In some cases, services have been disrupted for a week or longer. Completely unacceptable under any circumstance.

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