Bitcoin fixes: Head of Top Bank says Financial Policy is Failing

Representatives of the current financial system are inadvertently increasing the properties of Bitcoin at a higher frequency than before. The last is the president of Deutsche Bank, Karl von Rohr, who says that current methods are reducing their effectiveness in overcoming the economic crisis.

Von Rohr describes the current climate for the financial services industry as the most difficult time to remember. He says that geopolitical uncertainties are already affecting the global economy. As the growth of a decade begins to slow down.

Negative Interest rates do not work forever and Bitcoin Doesn’t Punish Savers

At the recent conference "The future of finance" organized by Bloomberg in Frankfurt. The president and vice president of Deutsche Bank, Karl von Rohr, joined those bankers to create an unintentional announcement of Bitcoin. He said global financial stability is in danger:

"At least I can barely remember, in my 25 years in banking, a more challenging time for the financial services industry."

Von Rohr cited examples of geopolitical tensions that contribute to uncertainty and the slow pace of global growth. He noted the uncertainty during the trade war between the United States and China. The ongoing catastrophe that led to Britain's departure from the European Union and civil unrest in various parts of the world.

The president of Deutsche Bank says that in many regions of the world. There are clear signs of economic slowdown after a period of growth:

"In some important economies, the recession warning bell is ringing."
In the context of Europe, von Rohr asserts that five-year negative interest rates are increasingly useless in order to promote economic growth:

With the fear of a growing recession

"We have reached a level where monetary policy is in serious danger of being out of the means to address the real economic crisis."

Von Rohr also noted the effect of "monetary experimentation" of negative interest rates on savers. He said that Europeans are reducing interest payments by 160 billion euros every year due to negative rates. The Deutsche Bank executive said:

"Since inflation is a fact, the result is the erosion of the assets of our European customers."

In such a situation created by the bank for those who wish to save instead of spending. It is not particularly difficult to see why Bitcoins may be more attractive to some. As an asset that is not fully affiliated with the current financial system and any national government. Bitcoin may not be subject to changes in its monetary policy. In times of geopolitical uncertainty, these rigid forms of money naturally become more attractive as hedges.

Add the objective of advancing negative interest rates, quantitative easing and other measures. And the case of Bitcoin is only strengthened. Many commentators have pointed out the usefulness of Bitcoin as a way to avoid the potentially disastrous consequences of such policies.