The Threat Of Negative Interest Rates Is Good For Bitcoin And DeFi, Andreas Antonopoulos Says

During an Ethereum Q&A session on Tuesday, August 25 Bitcoin advocate and influencer Andreas Antonopoulos stated that negative interest rates would help DeFi and the crypto community. 

Antonopoulos highlighted that in a world of negative interest rates money with a limited supply with mechanisms encouraging saving and providing return on investments would have the advantage. He believes that Bitcoin fits those characteristics. 

The Federal Reserve has lowered interest rates during the COVID-19 pandemic as Congress has passed stimulus bills to help buoy the economy. Reserve officials have said U.S. interest rates will not go negative, but around the world the European Central Bank and the central banks of Japan, Denmark, Sweden and Switzerland have gone negative. 

Antonopoulos said he believes negative interest rates confiscate individuals' savings. 

"Negative interest rates are good for DeFi they're good for cryptocurrencies they're good for the entire space," he said. "I think because negative interest rates are fundamentally an imposition of a tax on savers by a central bank trying to fill in a massive monetization gap created by excessive stimulus and excessive debt."

By Emily Mason

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