Cryptocurrencies Solve Modern Banking IssuesThe decision to shut down accounts linked to cryptocurrency exchanges is similar to an order meted out by Indian authorities, who asked banks to stop serving cryptocurrency exchanges. In India, this strict measure has had a noticeable impact on the market. Though pro-cryptocurrency individuals and groups have lobbied against the measure, stating that it stifles innovation and puts India on the backfoot when it comes to emerging technologies and the digitization of the economy. Yet, India’s state banks have themselves experienced over $14 billion in fraud in the last six months alone. Proponents of cryptocurrency have pointed to the fact that with Distributed Ledger Technologies (DLTs), such problems would not have arisen — while it is claimed by anti-cryptocurrency forces that cryptocurrencies would encourage illegal financial activity.
India's state-ran banks just reported over $14 BILLION in fraud from just the last six months alone.— Rhythm (@Rhythmtrader) November 19, 2019
Meanwhile, they're not allowed to deal with any cryptocurrency businesses due to the possiblity of fraud.
Makes perfect sense. 🙃
German Banking BehaviorMeanwhile, in Europe, German co-operative bank, Volksbank Fürstenfeldbruck, has passed on the cost of negative rates to retail customers with small deposits — with over a fifth of all German banks doing the same. The European Central Bank introduced the negative interest rate policy in 2014, which effectively makes account holders pay for storing their savings in banks. Such unethical behavior that affects those who are in the worst financial position is precisely the kind of behavior that cryptocurrencies were designed to oppose. Banks have repeatedly displayed issues of centralization that cryptocurrency enthusiasts rail against — whether that be freezing accounts or through negative interest rates. Cryptocurrencies have been praised for their censorship resistance, their non-custodial nature, and the freedom that they bring to their users. In almost every which way, they better traditional banking mechanisms — which is why it sees such ardent lobbying from those in India and other countries experiencing similar turmoil with respect to regulation.
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