Friday, June 21, 2024

Banks in Trouble: Bitcoin, a Ray of Hope

Bitcoin saves the day? It definitely can, considering the state of banks in various countries. Last week has been a test for banks in Turkey, Hong Kong and India with such activities going on as to adversely affect the economy. In such a scenario, many have pointed out how cryptocurrency may be the right call at the moment.

4 Million Turkish Accounts Frozen

As if inflation and economic sanctions were not enough, Turkish people face another blow when the government freezes around 4 million accounts without prior notice. This comes as even bigger of a disappointment since people were expecting the government to provide assistance with their debt payments. However, no such debt restructuring was mentioned in the New Economic Policy that came out on Monday. Approximately 2.5 million people (and companies, especially the private sector) have been affected by this sudden foreclosure. People are now beginning to wonder if Bitcoin may be the right currency to deal in since it does not involve an authority that can freeze their accounts all of a sudden. Perhaps it is time for Turkey to embrace BTC.

Hong Kong’s ATMs’ Run out of Cash

As per the reports of last weekend, the ATMs in Hong Kong ran out of cash. People are afraid that the government may freeze their accounts and seize the assets. With the presence of this fear and the fact of cash becoming a scarce commodity, many citizens are now turning to Bitcoins. Hong Kong’s Securities and Futures Commission has even taken a further step in improving the regulatory rules of crypto assets.

Indian PMC Bank Locks Millions of Accounts

The Reserve Bank of India has imposed a restriction whereby Punjab and Maharashtra Co-operative Bank (PMC) do not allow clients to withdraw more than Rs.1000. Last week the said bank with 137 branches across the country locked millions of account thereby not letting them access their savings. Furthermore, the PMC cannot renew or grant any loans unless allowed by the Central Bank. The Bank is in highlight also because of the financial scandal involving HDIL because of which people are concerned about the banking system of the country. Fraud, inappropriate mortgage points, liquidation of assets and putting an unacceptable limit on withdrawing money have made Indians anxious. However, the RBI still stands adamant in stating that the Indian banking system is safe and sound.

Indian Police’s Fight against the RBI

The millions of cryptocurrency retrieved last year from the Ponzi scheme were locked. The Pune Police has since then been attempting to find a way to transact the money but due to the RBI ban it has been impossible. An official plea has been made in the Supreme Court which is still pending. Discidium Internet Labs has given in an application in the Supreme Court for a request to the RBI. If the application is approved the RBI will give an order to the Central Bank to unfreeze the account and allow the Pune Police to transfer the cryptocurrency into Indian Rupees and into another account. However, so far this fight against the RBI has not brought any results and with the 2019 Bill the Pune Police is unable to resolve the matter. So far official pleas and requests have been made but in vain.

Read more: Richard Ells, CEO of Electroneum is Speaking at the Malta AI and Blockchain Summit 2019

Is BTC what the world needs?

Given the current circumstances in various states, perhaps cryptocurrency is the right choice. In comparison to fiat money, crypto money sure seems like a safer option and BTC being the most popular cryptocurrency needs to be invested in even more for a brighter future in the world of finance and trading.

Monesh Kumar
Monesh Kumar
Monesh Kumar is a cryptocurrency and blockchain enthusiast. He trades cryptocurrencies and holds some but he prefers holding Bitcoin, Ethereum & Cardano.

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