- Czech National Bank (CNB) hikes rates more than expected
- CNB suggests “don’t afraid of Bitcoin”
- Bitcoin Cash slumps more than 50% after making a peak
The Czech National Bank decided to hike interest rates by 20bps at today’s meeting while just 10bps was expected. The EURCZK tumbled under 26 in the aftermath and could keep on sliding if the pair manages to stay under that level. In terms of digital currencies, the CNB released a statement yesterday addressing Bitcoin and cryptocurrency on its website which could be interesting regarding how central banks perceive cryptocurrencies in comparison to fiat currencies. The statement is tilted “Don’t be afraid of Bitcoin”.
The document starts by stating that “Prague is home to a strong community of cryptocurrency supporters and users.” The statement then immediately turns to questions regarding whether institutions such as the Czech National Bank should be afraid of Bitcoin. The Czech National Bank states that there “is no reason for banks to fear” bitcoin and cryptocurrency. Virtual currency adoption is described as “negligible in its size and scope”, arguing that “electronic transactions using bitcoin worldwide amount to only 16% of the electronic transactions conducted in the Czech koruna, a currency used by just 10.5m people.”
Meanwhile, volatility on Bitcoin Cash remains stormy as the price plunged as much as 58% from above $750 to under $350 yesterday. Since then, the price has moved up to some extent but has stayed a long way off from its peak. At the same time, swings on the original Bitcoin have been contained thus far.