[joeyrideout]

European banks recently started toying with the idea of passing down negative interest rates to customer bank deposits, so that banks are less squeezed by reserves yielding negative returns (breaking the typical bank business model).

Just think, if CBDCs pass down the negative interest rates to everyone's cash, inside or outside of banks. That's not a currency I would be happy to hold.

[cm2187]

And that's the very goal of the monetary policy. Pushing you to invest into something riskier (including selling the currency).

[jmnicolas]

I think I read somewhere an Austrian bank is already charging negative interest rates on customer accounts (-0.5% IIRC).

[A4ET8a8uTh0]

I did not hear of this, but this is interesting. Doubly so given that in the old country, you are required to have a bank account to run a business ( as I understand it, that requirement technically does not exist in US -- technically ). So now apart from fees that require specific amount of balance, negative interest rate will ensure people won't hold too much.