I can't see how the no arbitrage hypothesis applies here. You're talking about different currencies. No arbitrage doesn't mean that whatever you do to the world won't change anything.
That said, you're probably right that interest rates would be lower since the demand for debt would go down since Bitcoin is deflationary but then again that goes against what you stated in the first place.
That said, you're probably right that interest rates would be lower since the demand for debt would go down since Bitcoin is deflationary but then again that goes against what you stated in the first place.