How would bitcoin change anything? The market pricing mechanism for bitcoin is outside the scope of the blockchain - in other words traders set that.
Likewise interest rates on bitcoin would be exactly the same.
Likewise interest rates on bitcoin would be exactly the same.
Libor is the rate at which banks lend to each other. It wouldn't matter if the contracts were dollar or Bitcoin or seashell denominated. They are private contracts to which the public is not privy. A simpler solution is requiring banks to post their interbank borrowings, nightly, to a clearinghouse.