Germany has been one of the few countries that have entertained blockchain technologies and cryptocurrencies, while other regions were still considering what to make of digital assets. The European nation may have inadvertently given Bitcoin and other cryptocurrencies a boost when the Volksbank Raiffeisenbank Fürstenfeldbruck (VRF) in Northern Bavaria revealed that they would be charging bankers for holding their assets within the bank.
The German bank has stated that that they were forced to do it because of the increased “parking” fees proposed by the European Central Bank [ECB]. Holders will be charged for as little as 1 euro, a revision to the previous rule that stated that adverse interests would only affect deposits above 100,000 euros.
With the latest imposition, VRF becomes the first bank in the country to designate negative interests lower than the earlier stipulated amount. The decision taken by the bank has undoubtedly left many investors reeling with Horst Biallo, the founder of a consumer portal stating:
“The reaction of the bank from Fürstenfeldbruck does not surprise me. Many other banks will do that in the future, to scare off people who only come to them because they have to pay these interest elsewhere.”
The new ruling will affect all money market accounts that were created since October 1. Every customer who creates a new account with the bank, it will demand a 0.5 percent negative interest from the depositor. Sources have stated that for a long time, only wealthy private and corporate clients were affected by negative interest rates. There have also been reports that state that the negative interest trend will continue and that the rates may go up even more.
The ECB has been held responsible for the changes in the rates as the central bank had reduced interest rates from 0.4 percent to $0.5 percent back in September. A new statement released by the directors of the Fürstenfeldbrucker Bank revealed that holders had already begun the migration to other banks and their services. The financial analysis predicts a massive drop in customer satisfaction as a large sector of society will be affected by the latest regulation.
Some cryptocurrency proponents have come to the forefront at this time to state that such a problem would not be present if digital assets were used because they belonged to a decentralized system. Crypto bulls have spread the message that despite Bitcoin’s recent fall, the bull run was just around the corner and that it possesses umpteen more advantages than regulated fiat currency.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.