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Negative Rates On Cash Held In Pensions?

serfserf Member Posts: 7,421 ✭✭✭
It's becoming the new normal & negative rates is one way to have fees and taxes taken from savers.But The latest rabbit of the hat will be crypto currency settlements between central banks.This means the reserve currency of the U.S. Dollar will be at stake and it has been unfolding already around groups of central banks for exchanging currencies. Soon The petro dollar will be finished for trading for oil. The Federal Reserve is trying to play the game also but they are the biggest loser in the new technology of banking. https://www.forbes.com/sites/rogerhuang/2020/07/24/why-cryptocurrency-matters-in-the-coming-fight-between-the-digital-yuan-and-dollar/#6b65a37233f4
                                                          serf

From September, Bank of Ireland will apply an interest rate of 0.65% on pension pots, meaning customers will be charged €65 a year for every €10,000.

The bank said: "European Central Bank interest rates have been negative since 2014. Since then banks have been subject to negative interest rates for holding funds overnight and market indications are that rates will remain low for some time.



Comments

  • chiefrchiefr Member Posts: 10,999 ✭✭✭✭
    The dollar is still the premier world currency and dont expect that factoid to change anytime soon.
  • serfserf Member Posts: 7,421 ✭✭✭
    There is  lot of back door central banks dealings that don't include SWIFT with currency exchanges & Who is willing to buy U.S. Bonds in the future could change quickly if cryptocurrency becomes more acceptable to world traders.
                                                           serf
       https://royalsocietypublishing.org/doi/10.1098/rsos.180155

    4.1. Central bank digital currency

    Could and should central banks issue central bank digital currency? Recently, a previously academic question of feasibility and desirability of CBDC came to the fore (e.g. [2031]). By issuing CBDC, states can abandon physical cash in favour of its electronic equivalent and replace a large chunk of government debt with it. The impact on society at large will be huge [32]. CBDC can obviate the need for fractional banking and dramatically improve the stability of the financial system as a whole. On the other hand, the ability of the banking sector to create money ‘out of thin air’ by making loans will be significantly curtailed and transferred to central banks. It is clear that developments in this direction are inevitable, but their timing and magnitude are uncertain.

                                     


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