Government intervention in free markets often leads to long-term problems.

Recent proposals to lower credit card interest rates have sparked interesting discussions. Many people do not understand why banks' interest rates are so high. In fact, there is an economic logic behind this: banks set high interest rates to cover losses from customers who cannot repay their loans. This is called risk pricing mechanism — essentially, the market self-regulates.

What if these rates are forcibly pushed down? It sounds very friendly to borrowers, but the consequences could be harsh. Banks cannot offset bad debt losses through interest; they will either tighten lending standards (making it harder for the poor to borrow), raise other fees (increasing hidden costs), or simply exit the market (shrinking financial supply). In the end, ordinary people are the ones who suffer.

This is why market participants — including crypto investors — should be wary of policy-driven price controls. When market signals are distorted, the true risks are often hidden rather than eliminated.