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Even though it’s your money, major news outlets are warning consumers not to take it out of the bank amid the coronavirus outbreak.
As the coronavirus panic continues, many people have been anxious to take out cash from the bank. However, some media outlets are now telling us that this is simply a bad idea.
When you deposit cash into a bank, you would expect to be able to take it out any time you want. After all, it is your money. However, banks have been struggling to keep up. In fact, certain locations in New York have already been reporting cash shortages in the past week, as BeInCrypto has reported.
The ongoing cash shortage has caused CNN to scold the American public for taking out cash. “Do NOT take a bunch of cash out of the bank because of coronavirus,” the news outlet writes. [CNN]
Another news outlet, The Charlotte Observer, came to the same conclusion: “There’s absolutely no reason to stock up on cash amid coronavirus, experts say.” [The Charlotte Observer]
The FDIC recently tried to dispel fears with a similar line intended as reassurance.
“The safest place for your money is inside a bank,” the FDIC said. “Banks will continue to ensure that their customers have access to funds either directly or electronically.”
However, if you want to take out cash, that seems to not be possible.
CNN seems to think that ‘cash is no longer king.’ Indeed, cash has come under increasing scrutiny in the past year due to it being relatively untraceable. We live in a “Venmo world,” as CNN writes, and that means that taking out cash is simply archaic. Having access to physical dollars is now, apparently, a ‘non-issue.’
What CNN and other media outlets are effectively admitting to is that the bank simply cannot handle a mass withdrawal of cash. In effect, that would expose the fact that they do not have enough in reserves to match deposits.
Therefore, the recent warnings telling us not to withdraw cash says a lot about who controls our deposits at the bank. More importantly, it makes a clear case that we need financial sovereignty. That’s been the main argument for for some time now—nobody can take it away from you and you can spend it as you please. There’s no bank, but instead, you are the bank.
It’s an enticing idea given the recent circumstances. As more and more banks refuse customer demands for withdrawals, we could see everyday people rethink banking altogether—and the next logical step is Bitcoin, cryptocurrencies and being your own bank.
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