Bitcoin could counter the IMF's proposed negative interest rates

In a February blog post, economists from the IMF proposed a policy that taxes bank deposits instead of allowing them to accumulate interest.

The proposal was written and published by Ruchir Agarwal, an economist at the IMF, and Signe Krogstrup, an advisor in the Research Department at the IMF. The two discussed implementing a policy which would effectively tax bank deposits instead of allowing them to accumulate interest over time-negative interest rates, much like those seen in Japan.

The proposal pointed out that introducing negative interest rates during financial crises was not uncommon among central banks.

"To illustrate, suppose your bank announced a negative 3 percent interest rate on your bank deposit of 100 dollars today. Suppose also that the central bank announced that cash-dollars would now become a separate currency that would depreciate against e-dollars by 3 percent per year. The conversion rate of cash-dollars into e-dollars would hence change from 1 to 0.97 over the year. After a year, there would be 97 e-dollars left in your bank account."

If they continue to follow the trajectory, it's possible the US will see near-zero interest rates.

This would correlate to zero or negative interest rates on saving deposits and other safe, liquid investments.

If banks start imposing negative interest on deposits then citizens will effectively lose a percentage of their savings every year.

Holding bitcoin and other cryptocurrencies in such scenario could prevent people from being the victims of negative interest rates.

Many have thus turned to Bitcoin, seeing it as the only way to salvage their savings if negative interest rates see implementation.

The world's largest and most popular coin could be a tool used for financial freedom and mobility, even in first-world economies, if negative interest rates ever see implementation from central banks.