How Can a Bitcoin Bank Pay Interest?
While several global headlines have declared that millennials are increasingly disinterested in banks, the owners of BTC.sx exchange have launched Magnr, “the first savings account for Bitcoin.” They promise a 2.18 % return over the first six months of a deposit, and claim that all depositors will be able to audit their individual holdings on the Bitcoin blockchain. Wondering just how bank-like Magnr intended to be, CoinTelegraph interviewed Josh Blatchford, CMO of Magnr. “One key difference from traditional processes is that we maintain all transactions on the blockchain such that all our....
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European Central Bank. In a landmark monetary policy move, the European Central Bank (ECB) has announced negative interest rates. The ECB will charge an interest rate of -0.1% to banks wishing to store euros within central bank vaults. Domestically, the intention is to prod banks into lending money to businesses as opposed to buying government bonds. Internationally, the intention is to cause depreciation of the Euro relative to other currencies to increase the competitiveness of European exporters. It is unlikely that individual users in the 18 countries under the ECB's control will see....
Deutsche Skatbank, a division of VR-Bank Altenburger Land, is introducing negative interest rates. Customers with over €500,000 on deposit as of November 1 will earn a "negative interest rate" of 0.25%. In other words, instead of earning positive interest, they will have to pay 0.25% per year for banking services. Also read: ECB Announces Negative Interest Rates: Bitcoin Price Rallies. Of course, the initiative received a lot of criticism. Wolf Richter says: "'Punishment Interest' is what Germans lovingly call this. It's the latest and most blatant step of the central-bank strategy to....
Following the latest meeting of the monetary policy committee, the Central Bank of Nigeria says it has hiked the monetary policy rate to 15.5%. By increasing the key interest rate by 150 basis points, the central bank hopes to “narrow the negative real interest rate gap and rein in inflation.” The rate increase came just days after the naira’s parallel exchange rate against the dollar plunged to a new low. Narrowing the Negative Real Interest Rate Gap According to the Central Bank of Nigeria (CBN), members of the bank’s monetary policy committee (MPC) have....
A large retail and commercial bank in the United Kingdom, National Westminster Bank Plc, or NatWest, has recently warned its customers that they may be charged negative interest rates. This is the first time a UK high street bank has threatened negative interest rates on customer savings. Natwest Imposes Negative Rates on Business Accounts. For now, the....
Over the past few days, some of Britain’s major banks including Santander UK, the Royal Bank of Scotland and UK-based commercial bank NatWest have been notifying their customers of potential implementation of negative interest rates on current bank accounts. While the RBS and NatWest are yet to disclose the timeframe of the cut in their interest rates, one of Britain’s largest banks, Santander UK, has told its customers that the bank is decreasing the interest rate of its 123 Current accounts from 3% to 2%. Santander UK’s 123 Current account has been serving millions of customers since....