Deutsche Bank: 'Aggressive' Central Banks Making Bitcoin More Attractive

The potential interest rate cut by the United States central bank is apparently one of the reasons for the recent surge of bitcoin, Deutsche Bank exec Jim Reid said in an interview with CNBC on June 26.

"If central banks are gonna be this aggressive, then alternative currencies do start to become a bit more attractive."

Reid referenced a recent speech by Fed's chairman Jerome Powell, who said yesterday that the central bank is considering a cut of interest rates amidst the current economic uncertainty and inflation risks.

Bitcoin has continued to hit new 2019 records of above $12,000, while its market cap surged above $220 billion with a dominance rate reached more than 60% for the first time since April 2017, as reported earlier today.

Bitcoin has risen more than 30% from around $9,000 to $12,616 at press time, according to data from Coin360.

In the interview, Reid has reiterated his negative stance towards easing practices by central banks after previously claiming that the existing fiat-based currency system was unstable and nearing its end.

Providing his remarks back in November 2017, in the wake of the bitcoin's all-time high record of $20,000 in December 2017, Reid criticized continuous printing of money by banks, warning that this could lead to the end of paper money.

In recent weeks, the European Central Bank President Mario Draghi also hinted at new interest rate cuts.

Ironically, Deutsche Bank itself could be partially blamed for a weakening economy.

The bank's stock has been dropping to record lows over the past year.