Bitcoin-cautious Germany has seen its 1st bank demand that standard savers pay it to carry their cash — even as little as €1.

According to multiple native press outlets including the Süddeutsche Zeitung on Nov. 19, the Volksbank Raiffeisenbank Fürstenfeldbruck (VRF) in Northern Bavaria is currently charging 0.5% negative interest rates on the smallest deposits.

Bank on negative interest rates: “We had to”

“We had to do it,” the publication quoted the bank’s management as language.

The reason, they said, was the price of “parking” cash at the EU central bank (ECB).

In Germany, negative interest rates antecedently impacted solely deposits higher than €100,000, that constituted an interest-free allowance. VRF’s move makes it the primary loaner in the country to focus on savings below that level.

“Recently, additional clients are coming to us from different banks wherever they’ve already used up their allowance,” the management continued .

Germany may “open floodgates” for banks

As Top Market Group reported , negative interest rates are starting to form a part of the ECB’s financial policy. The development ultimately implies that some portion of savers should pay banks to hold their cash.

Critics have warned that such moves would incentivize the general public to move into cash, whereas alternatives like Bitcoin (BTC) conjointly stand to profit.

By distinction, Bitcoin doesn't suffer from the inflationary meddling in its provide and associated destruction of its worth, that means HODLers would never be forced to pay to have it.

Last month, enterpriser Cameron Winklevoss noted the cryptocurrency was the perfect technique of escaping negative rates on bonds, that account for investments price $17 trillion.

Speaking to Süddeutsche Zeitung in the meantime, the CEO of a German client portal warned that VRF might “open the floodgates.”

“We’re seeing a lot of movement on the market at present,” Oliver Maier stated. He noted that the ECB’s call to cut its benchmark rate of interest for banks to -0.5% from -0.4% was the reason for the upset.