Bitcoin-cautious Germany has seen its starting time depository financial institution demand that ordinary savers pay it to agree their money — even every bit niggling as €1.

According to multiple local press outlets including the Süddeutsche Zeitung on Nov. nineteen, the Volksbank Raiffeisenbank Fürstenfeldbruck (VRF) in Northern Bavaria is now charging 0.five% negative interest rates on the smallest deposits.

Bank on negative involvement rates: "We had to"

"We had to do it," the publication quoted the depository financial institution's management every bit proverb.

The reason, they said, was the price of "parking" money at the European Key Banking concern (ECB).

In Germany, negative involvement rates previously impacted but deposits above €100,000, which constituted an interest-free allowance. VRF'south movement makes it the showtime lender in the country to target savings below that level.

"Recently, more clients take been coming to us from other banks where they've already used up their allowance," the management continued.

Germany could "open floodgates" for banks

Equally Cointelegraph reported, negative interest rates are showtime to grade part of the ECB's monetary policy. The miracle ultimately means that some portion of savers must pay banks to hold their money.

Critics have warned that such moves would incentivize the public to move into greenbacks, while alternatives such as Bitcoin (BTC) too stand to benefit.

By contrast, Bitcoin does not suffer from the inflationary meddling in its supply and associated destruction of its value, meaning HODLers would never be forced to pay to own information technology.

Last month, entrepreneur Cameron Winklevoss noted the cryptocurrency was the ideal method of escaping negative rates on bonds, which business relationship for investments worth $17 trillion.

Speaking to Süddeutsche Zeitung meanwhile, the CEO of a German consumer portal warned that VRF could "open up the floodgates."

"We're seeing a lot of movement on the market now," Oliver Maier said. He noted that the ECB's conclusion to cut its benchmark involvement charge per unit for banks to -0.five% from -0.4% was the cause of the upset.