Back to back there has been news on some of the big banks failing and falling out. These are the too big to fail banks and invested in Government bonds and yet they have failed, which barely anyone imagined. The Signature Bank and the Silicon Valley Bank both of them are the 2 large banks of U.S. and now they are giving all types of suspicious. Based on the Silicon Valley bank failure, customers of signature bank accounts started making huge amount of withdrawals. This is what normally happens, the ripple effect, when fear seeps in. We cannot miss out the Credit Suisse Bank collapse. One of the oldest and reputed bank of the world and yet it went into crises.
This ripple effect is going to cascade down in the entire banking system. In India the 3 strong banks are HDFC, ICICI and SBI Banks, if by any chance if these 3 banks fail then majority of the Indian people will incur heavy financial loses. Whether the government is going to bail them out or not is a secondary question. They would ideally do it, but this will mean that majority of the Indian population will lose out their faith on the entire banking system, which they cannot afford to do it. In India no matter how much ever amount you hold in your account but if the bank fails the sum insured is up to a maximum of 500K INR, that's a disaster for the bank investor. The Governments will bail out the big banks, but what about the smaller ones, they may not get this benefit, and in the smaller banks majority of the middle class and lower middle class is invested, so their money will always be at a risk.
This can also just be the beginning of the CBDCs roll out, where most of the small time banks will start falling out and getting consolidated with the big banks, in the end leaving a few of them and then the roll out of Central bank digital currency would be much easier. The Banking system has always worked on the commands of the Governments and this can be very much possible. In India the total amount of loan defaulters sum up to almost 100K crore and some of the big banks have also written off heavy amounts of loans for the big corporates. Would they ever do it for a common man? At the end of the day, whose money is all this. The Government will print more money to feed the banks and this in return will again impact the common man in terms of inflation and interest rate hikes.
What does all of this teach us common people a lesson?
It is high time that we think about becoming independent about our finances and not be dependent on Governments for everything, whether it is about resources or finances; we need to be the owner of our own assets and have as much as possible less dependability and what else can be better then Crypto Investments. CBDC is one more step ahead of getting into a Social Credit score system.
Though I have also been invested in many Altcoins but still somewhere I feel that these Altcoins can also be controlled at some stage, so then which is the best asset. There is only one which is the Bitcoin, where absolute there can be no control and your asset will be with you. Physical Gold is also one more investment, but the only issue with it is the storage, where BTC does not have that issue.
Personally I feel that roll out of CBDCs is more of a trap, it will create a Digital identity where you will be in constant radar of the Government. It just means that Government will track your every single penny and also be in control of it.
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Posted Using LeoFinance Beta
During the past weeks I have talk to my family and friends about this matter, some still believe in the banking system and others have started to take part of their money and split between different banks, me personally as now Im getting liquidity I wont need will start to put it on crypto at least Bitcoin is an asset I can custody myself, prefer to loose value in the short term and see it disappear in seconds just because a bank was too greedy
For majority of the people Banks are like God and it is very difficult to make them understand, because they strongly believe that Banks are the safest to keep their money. My sister works in a bank, I have a major challenge putting across my point to her :-)
BTC will any time give good returns and it has just started to pick up.
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It's definitely a showdown brought to us by the banking system. Both Credit Suisse and Deutsche Bank have been in troubled waters for quite a few years now with the latter to eventually follow suite if not bailed out by the govt esp. due to its "branding" (Deutsche). The retail banking sector will be wiped out leaving only a handful to operate with larger institutions. And yes, a perfect scenario to introduce CBDCs.
My friend worked for DB and he would always say how bad the internal scenes are and so much of instability. It has been giving shocks since many years, but people still fall for them. For time being everyone pays attention and once it gets out of news people again get comfortable with them, rather than finding out alternatives and securing their finances.
Yes, you're right. Unfortunately, most people love to be cozy and literally go back to "sleep" as soon as they have been tricked into the illusion of "everything is safe on deck". Taking responsibility for ones finances and life goes beyond the comfort zone.
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Yeah, this is their play. Push out the smaller banks and have the financial system controlled by the few. Its all about control.
We need to take back control of our own lives, that's the only way things will change.
I agree totally with you on this xxxx
Thank you @trucklife-family. Many people are realizing this but it has to get into masses to make a change. If maximum people withdraw their money from banks and invest in Cryptos then that is where they will face the real challenge and understand the power of common people.