Wall Street Journal: CBDC could lead to "negative interest rates"

According to a new report from September 10, the announcement of CBDCs could force central banks to adjust interest rates. Central bank digital currencies (CBDCs) can negatively impact interest rates by providing additional regulatory tools. A September 8 article by senior columnist James Mackintosh claimed that the difference between CBDCs and cash would occur when interest rates fell below zero. Don't waste money on digital money through middle banks, people prefer "zero" by holding real money. He added that if the central bank provided digital money that couldn't be hidden under the bed, it would have a bigger impact on interest rates. Bad interest rates are the last resort for midsize banks to jumpstart the economy by stimulating lending and spending when there is a market, and interest rates pay off loans more often. U.S. interest rates are currently at an all-time low of 0.25%, according to the Federal Bureau of Economic Research, and the Fed cut interest rates to 0% in March 2020 (Wall Street Journal)