Expectations to reduce the base interest rate of the US Federal Reserve are one of the reasons for the recent rapid growth of Bitcoin, as well as investor interest in the cryptocurrency market. About this in a conversation with CNBC, said the head of the department of credit strategies of Deutsche Bank Jim Reed.
“If central banks are just as aggressive, alternative currencies will become much more attractive ,” said a representative of Germany’s largest financial conglomerate.
Reed mentioned the recent statement by the head of the Federal Reserve Jerome Powell that his department was considering a certain reduction in the interest rate. Such a measure, I am sure the head of the Fed, will reduce the level of uncertainty in the American economy.
In general, Reed criticized the unconventional monetary "recipes" of central banks. According to him, quantitative easing only destabilizes finances, “bringing the end of systems based on fiat currencies closer”.
In addition, the manager of Deutsche Bank expressed the opinion that the wave of interest in Bitcoin and other cryptocurrencies is largely due to the hype around the Libra project from Facebook .
Meanwhile, Investing.com reported that the United States and China on the eve of the meeting at the G20 summit in Osaka agreed to take a pause in the trade war . The agreement reached so far will allow the United States to postpone plans for the introduction of new duties on Chinese products.
The point in this matter is likely to be put on June 29 during the G20 summit. Thus, with a favorable outcome of events, the tendency to lower export-stimulating rates may stop.
Earlier, BlockchainJournal published material on how central banks are bringing the global financial crisis nearer and, at the same time, contribute to the mass adoption of cryptocurrencies.
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