Negative and increasingly lower interest rates are going to become a burden for many account holders cutting across the European zone. The situation as of now is only retrogressing further and further down the line following the European Central Bank announcing a new rate cut to a record low of -0.5%. As it stands, corporate customers and private customers in many countries on the continent are looking for other ways, apart from fiat to store their value.
It is at this point that cryptocurrencies have brought a revitalization in the continent and is helping many Europeans avoid losses. The current stipulations force residents of the European Union to pay a lot in terms of negative interest rates. Decentralized digital currencies and the crypto industry are beginning to look more and more lucrative, in terms of alternative savings and storage of value for savers, spenders, and investors alike.
The viability of cryptocurrency in the European Union will be even stronger should the predictions of a new major crash in the Fiat currency system come to pass. This year’s rebound of the crypto market is enough proof that the number of crypto essentials in the region is likely to grow entirely.
Whereas banking is imperative for both businesses and private individuals, it is worthwhile to note that cryptocurrencies were invented to avoid third parties such as banking institutions and financial organizations. It is these financial organizations that are demanding payments and reparations for banking services, a fact that has been making it more and harder for investors and traders to get value for their money as the rate caps continue to grow more and more.
Fortunately, a new dispensation of fintech companies have stepped up to fill the gap and are now offering very much competitive financial products for their cryptocurrency users. One such company is Cred, which is a partner of bitcoin.com and allows its customers to gain interest in their crypto assets.
Additionally, the returns come as high as 6% of Bitcoin Cash, BCH, and even 10% on bitcoin core, BTC. Therefore, such companies offer investors the option to keep their digital assets while at the same time gain much higher returns than exchanging their coins into traditional Fiat currency and then depositing that money into a bank account.
It is safe to say that with time and gradually, the increasing rate cuts are going to move people further away from fiat and into the cryptocurrency and crypto market world. Europeans are now finding this to be true with every single day, and they are starting to consider the crypto market and cryptocurrencies as a better store of value as compared to traditional fiat.