Very false. Lending money now, in return for more money in the future, helps individuals who need money now and rewards individuals who would rather have money in the future. Not only is this a "valuable service," it is a fundamental part of an economy.

Consider the most basic example - One man has some money, but no need to spend it. Another man has no money, but a great business idea. Both men can be made better off if the former lends money to the latter at an agreed-upon interest rate. The former man will have more money than he otherwise would, and the latter man will have the opportunity to try his business idea, succeeding or failing in the process.

Without interest, there is no incentive for this exchange to occur, and thus it would not, and thus both men (and the world) are worse off.

Don't demonize interest. Demonize fiat currencies.