Banks

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears

30/03/2020 by Idelto Editor

On Sunday, the Central Bank of Egypt (CBE) announced it had instructed financial institutions in the country to put withdrawal limits in place for cash. Regional reports disclose that Egyptian residents can only withdraw 10,000 Egyptian pounds ($640) and businesses can only withdraw 50,000 pounds ($3,200). The CBE cited concerns over the covid-19 outbreak and also limited automated teller machine (ATM) withdrawals to 5,000 pounds per day.

Also read: Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Central Bank of Egypt Enforces Cash Withdrawal Limits at Bank Branches and ATMs

The global economy has been suffering from the economic hardships tied to the covid-19 outbreak that has ravaged multiple countries. The coronavirus scare has caused people to question the use of cash due to the uncleanliness of bills. For instance, at the beginning of March, the U.S. central bank told the public it was holding U.S. dollars repatriated from Asian countries in a separate area. Further, the faltering economy has also caused banks in countries like the U.S. and Germany to place withdrawal limits on cash.

Now Egyptians are facing the same cash issues and the country’s central bank is imposing cash withdrawal limits across the board. In addition to the withdrawal limits imposed, the CBE’s Tarek Amer told reporters on Sunday via Sada al-Balad TV that “Egypt is facing a cash problem.” Amer disclosed that there’s roughly 26 billion pounds being transferred out of Egypt to international banks and Egyptian travelers are also taking lots of cash with them when they travel abroad. However, local media quickly pointed out that Egyptian expat remittances were well over 26 billion pounds and were actually closer to 34 billion pounds ($2 billion+ USD).

The monetary authority of the Arab Republic of Egypt explained on March 29 that it had told Egyptian banks to impose limits on cash withdrawals. The reason for the CBE’s move is to help curb the rising coronavirus spread in Egypt, Africa and other countries in the Middle East. The CBE’s new guideline says that the daily limit for individual withdrawals will be 10,000 Egyptian pounds ($640) and Egyptian companies can only withdraw 50,000 pounds. Further, the central bank told financial institutions to limit ATM withdrawals down to 5,000 pounds. The Egyptian pound’s inflation rate has been worse than most countries, as it was 13% in 2019 and 9.9% in 2020. Most central banks try to keep the inflation rate around 2%, but the Egyptian pound has suffered since the CBE floated the national currency in November 2016.

Egyptians have also been told by the CBE that they should “avoid paper currency” and the citizenry should adopt electronic transfers and e-payments so they can control the covid-19 outbreak. “All banks canceled fees on transfers and e-payment methods for the citizens’ convenience,” the CBE said on Sunday. The day prior, the central bank of Egypt started an electronic payments initiative to encourage citizens to stop using physical pounds. Before that initiative, the CBE told smaller banks they could not impose late payments on certain loans and asked banks to delay credit penalties against customers and organizations.

Withdrawal Limits Started in Lebanon and India Well Before the Covid-19 Outbreak

The covid-19 outbreak is not the first sign of governments worldwide limiting the use of cash within a nation. Lebanese citizens have been dealing with the economic hardship as well. The country’s central bank imposed customer withdrawal limits last October. The Reserve Bank of India (RBI) imposed strict restrictions at the end of September 2019, which caused a broad range of Indian citizens to grow angry and rush branches.

Following the coronavirus scare, a few U.S. banks imposed withdrawal restrictions as customers from the Hamptons in New York tried to empty large accounts. Bank customers from a few other U.S. states also complained of withdrawal limit issues from financial institutions like Bank of America, Chase, and JPMorgan. Last week, reports also disclosed that a number of German banks have imposed withdrawal limits and customers can only withdraw 1,000 euros per visit.

Meanwhile, throughout the madness of this crazy environment filled with financial calamity, bitcoin supporters believe the time is now for worldwide citizens to adopt a censorship-resistant peer-to-peer electronic cash system. Banks have continued to make it harder for people to do what they want with their own money and with the covid-19 crisis, the problem is far more apparent. Americans, Egyptians, Lebanese, Indians, Germans, and citizens across the globe are starting to realize the glaring issues tied to modern central banking the hard way.

What do you think about the CBE imposing Egyptian pound withdrawal limits? Let us know in the comments below.

The post Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears appeared first on Bitcoin News.

Major South Korean Bank Prepares to Launch Crypto Services as Government Green-Lights Regulation

28/03/2020 by Idelto Editor

Following the approval of a regulatory framework for cryptocurrencies by the South Korean government, one of the largest banks in the country is preparing to launch a range of crypto services. KB Kookmin Bank has applied for trademark registration, reportedly listing over 20 crypto services on its application.

Also read: 2x Bitcoin — Wanna Double Your BTC to the Moon? Forget About It

KB Kookmin Bank Registers Trademark for a Wide Range of Crypto Services

One of the largest banks in South Korea, KB Kookmin Bank has filed a registration application to trademark “KBDAC.” Local news outlet Digital Today reported on Friday that the bank listed over 20 crypto services on its application, adding that trademark registration can take between six months and two years in South Korea.

The bank’s filing with the Korean Intellectual Property Office dated Jan. 31 details a number of crypto services, including trading, financial reporting, asset management, consulting, advisory, over-the-counter brokerage, and custody.

A KB Kookmin Bank official explained that KBDAC is related to the bank’s collaboration with blockchain company Atomrigs Lab Inc., announced in June last year, the publication conveyed. However, the official did not reveal the service launch date. Meanwhile, the bank has also been actively exploring various use cases of blockchain technology.

South Korea Approves Crypto Regulation

KB Kookmin Bank’s move coincides with the passing of a revision to the Act on Reporting and Using Specified Financial Transaction Information. This bill, introduced in November last year, passed the National Assembly on March 5 and the South Korean government approved its revision on March 17.

Under the new law, South Korean cryptocurrency exchanges must use the real-name system by partnering with a financial institution that can provide this service. Banks will be obligated to conduct customer due diligence on the crypto businesses they deal with, ensuring proper reporting to the Korea Financial Intelligence Unit (KOFIU).

“The revision bill will take effect one year after promulgation, and the current crypto-asset business operators will be given a six-month transition period to report to the KOFIU,” South Korea’s top financial regulator, the Financial Services Agency, explained. “This revision act will place Korea’s legal framework on crypto assets more in line with international standards set forth by the Financial Action Task Force (FATF) and strengthen its AML/CFT regime.”

Do you think many South Korean banks will start offering crypto services? Let us know in the comments section below.

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Printing Money from Thin Air – How the Fed Reduces Purchasing Power and Makes You Poorer

26/03/2020 by Idelto Editor

Unless you have your head in the sand, you’ve probably realized that governments and central banks can print money out of thin air and in unlimited amounts. The United States and the Federal Reserve have been creating money from nothing for years because they had exhausted all their monetary policies. Despite the fact that many Americans will be happy to get a $1,200 check from the Treasury, the move will essentially debase the U.S. dollar, reduce it’s purchasing power, and make every citizen poorer.

Also read: US Real Estate in Jeopardy – Analysts Predict Housing Market Crash to 29-Year Lows

The Multi Trillion-Dollar Stimulus Package

The big stimulus package has been approved and the Federal Reserve and the U.S. Treasury have already funneled trillions into the hands of financial incumbents. Further, these entities plan to send direct payments to each American as well. News.Bitcoin.com reported yesterday that a 2 trillion-dollar stimulus plan was in the making and some estimates say the package could end up being upwards of $6 trillion. Essentially, there’s certain criteria Americans have to fit financially and people making $75K or less annually will get a check for $1,200. People with children will also be eligible for $500 per child under the plan.

The Great Depression was made great by Hoover and Roosevelt’s attempts to rescue the economy. Politicians could not resist the temptation to “help”, even though their programs unnecessarily prolonged and exacerbated the Depression. Today’s #stimulusbill will do far more damage.

— Peter Schiff (@PeterSchiff) March 26, 2020

Unfortunately, people who are excited about this money do not understand how destructive it will be to their purchasing power. All the U.S. government is doing is copying the tactics of currency debasement used by every fallen empire before it, like the Byzantines and Romans. Moreover, a number of central banks worldwide are discussing giving checks to citizens. Financial institutions like the Bank of Canada has also promised to give Canadians $2K per resident. Canada’s biggest banks announced last week that they are offering relief to homeowners by allowing deferred payments on mortgages. However, the Canadian banks plan to just tack the deferred payment onto the back-end of the loans and profit with extra interest. U.S. banks are also planning to profit from people who can’t pay their mortgage loans on time as well by simply racking up the loan’s interest.

When central banks buy a security, they pay it with money they create out of thin air.

There is more money in circulation, BUT NOT MORE GOODS AND SERVICES.

That’s how they debase the currency, lower its purchasing power, and make you poorer.https://t.co/JXEzHSvrS2

— Maxime Bernier (@MaximeBernier) March 25, 2020

Central banks have several methods when it comes to tweaking the monetary system like increasing the amount available for loans and removing the deposit requirement banks have to hold to remain solvent. The Fed also issues Treasury bonds so private banks and foreign investors can purchase them but this tends to increase interest rates. So instead of having to pay more money back to the lenders, the Fed buys the Treasury bonds itself in order to drop the rate. When the Fed does this scheme (quantitative easing or QE) with securities, Treasuries, bonds, and equities, the Fed is essentially creating money out of thin air to bolster the economy in the short term. This move, in turn, reduces the value of USD because there is more money than the number of products and services. To-date the U.S. government’s deficit is around $23 trillion and the interest owed plus the trillions more created essentially creates an everlasting debt vacuum.

How the Money Printing Debases Currency, Causes Inflation, and Reduces Your Wealth

Basic economics clearly shows that the increase of any money supply causes inflation and reduces purchasing power. The reason for this is because a spike in demand exceeds supply causing the prices for everything to jump higher. Every fallen empire and every modern government today has always inflated the money supply and the ‘just print more’ attitude has been infectious.

Unfortunately, scholars and economists understand that today’s financial incumbents and U.S. politicians are addicted to selling debt to generations who are not even born yet. The last 30 years of so-called progress in America has stemmed from the revolving debt machine. Back in 2010, a group of well known economists wrote to former Fed Chair Ben Bernanke and told him how dangerous it was to continue the large-scale asset purchases (QE).

“We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued,” the economists warned. “We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.”

Raising Taxes, Austerity Measures and the ‘Biggest Budget Liability’

Politicians think they can cure the disease by just raising taxes on nearly everyone under the sun, but they claim they will take from the rich and corporations. To combat the rising inflation the common solution is higher taxes and increased austerity measures. When people ask why they can’t just print as much money as they want and just remove taxes, the question will not be answered. This is because bureaucrats expect you and future generations to pay for all of the debt with interest. A recent tweet from Coinshares executive, Meltem Demirors, notes how taxation is all part of the plan.

“The U.S. expects to collect close to $4 trillion in taxes in 2021. Over 75% of it comes out of our paychecks – as individual income tax and payroll tax,” Demirors tweeted on Wednesday.

“Now like many people, the U.S. government spends more than it makes,” Demirors added. “Before the recent turmoil, the U.S. government’s 2021 budget was expected to have a $966 billion deficit. Since we’ve been doing this for a while, the total national deficit is $23 trillion. It’s more than the entire GDP of the US in any given year (the sum of everything produced). If you add in unfunded liabilities, the number is closer to $120 trillion. $120T = $798k per taxpayer.” The Coinshares executive added:

35% of the U.S. workforce, boomers, are set to retire in the next decade. They also account for the biggest budget liability – relying on pensions, social security, medicare – money that simply ISN’T THERE.

After understanding that U.S. politicians and all governments simply print money out of thin air, many bitcoiners have opted out of the insane monetary system. This is because crypto advocates understand the importance of not only censorship-resistant money, but also a predictable, mathematical system that cannot be inflated on a whim. Central banks and the Fed like to keep the inflation rate around 2% but after the whole world just created trillions out of thin air that number is going to be much harder to control. BTC’s inflation rate, on the other hand, will be dropping to 1.8% after the halving in May.

What do you think about the Fed creating trillions of dollars out of thin air causing inflation, debasing the USD, and robbing taxpayers? Let us know what you think in the comments section below.

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World’s Largest Banks Losing Stock Value During Weeks Marked by Pandemic

25/03/2020 by Idelto Editor

The spreading coronavirus infection is taking a toll on the global economy and traditional financial institutions are already hurting. The world’s largest banks have seen their stocks losing value over the past weeks and months while facing cash withdrawal pressure and preparing to deal with a shrinking asset base.

Also read: US Cash Crisis: Withdrawal Limits Spark Bank Run Fear

China’s ‘Big Four’ See Their Stocks Tumble

No one has a clear idea where this is going or what comes next for the planet’s financial system. What’s obvious, however, is that some of its elements are already under stress. Reports of banks imposing withdrawal limits in parts of the U.S. indicate a cash crisis is brewing. New interest rate cuts, more money printing and the flight of capital towards assets they don’t manage, such as cryptocurrencies, are going to limit the value banks have under their control.

China, where the covid-19 outbreak started, is home to the world’s largest banking sector in terms of assets. In mid-2019, the official figure stood at over $40 trillion, despite liquidity problems with some small regional banks and a credit crunch on the interbank market that required intervention from the People’s Bank of China. The big four state-owned commercial banks, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China, are topping the 100 largest banks list, according to the latest edition of the S&P Global Market Intelligence report.

These financial behemoths have been watching the prices of their stocks drop over the last few months. From this year’s high of 6.01 yuan (approx. $0.85) in early January, ICBC shares are now trading at a little over 5.10 yuan ($0.72), and CCB stocks dropped from 7.49 yuan ($1.06) on Nov. 7 to a low of 6.17 yuan ($0.87) this past Monday, before bouncing back to 6.37 yuan ($0.90) on March 25.

The shares of the other two major Chinese banks also lost value, especially during the last month as authorities were struggling to contain the spread of the deadly coronavirus and deal with the economic fallout of the epidemic. Japan’s Mitsubishi UFJ Financial Group, another Asian banking giant, saw a steep decline in the value of its shares, from 566 yen ($5.08) on Feb. 21 to 384 yen ($3.45) on March 19. Its shares are currently trading for around 450 yen ($4.04).

Western Banks Affected by the Spreading Virus

The last several weeks brought similar results for the leading banking institutions in the United States, which now has over 50,000 confirmed covid-19 cases. JP Morgan’s stock fell to $79.03 from $137.49 per share on Feb. 20. Bank of America shares dropped from a monthly high of close to $33 to around $18 on the first day of the week before rising back to around $20 on Tuesday, when stock markets reacted to the Federal Reserve’s latest announcement. The Fed pledged to an open-ended quantitative easing in response to the economic challenges posed by the epidemic.

Other banks that have been hurt by the crisis which led to a slowdown in economic activity around the world include the European HSBC and BNP Paribas. The shares of the London-based investment bank and financial services holding company, which were selling for over $35 about a month ago, started this week at a little over $28. Paris-headquartered BNP Paribas saw its stocks plunge by almost 50% to €25.43 ($27.40), from €48.70 ($52.69) on Feb. 25. Deutsche Bank’s shares registered similar losses, dropping from close to €9 ($9.74) in late February to a monthly low of under €5 ($5.39) in mid-March.

What do you think of the world’s leading banks losing stock value? Tell us in the comments section below.

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Coronavirus Bailouts: US Banking Watchdogs Waive Hundreds of Regulations, Red Tape, Financial Oversight

23/03/2020 by Idelto Editor

In 2019, cryptocurrency and blockchain businesses saw more regulation than any year prior. G20 finance ministers, central bank governors, and regulators cracked down hard on the bitcoin industry. However, during the covid-19 scare, U.S. authorities have been dropping regulations on a whim, making it easier on the financial sector. On March 22, the Federal Reserve revealed it would work with a group of regulatory agencies in order to give banks more leeway when it comes to modifying loan terms.

Also read: Minting Basic Income – US Lawmaker Asks Treasury to Issue Two $1 Trillion Coins With No Debt

What Are Regulations Good For? Absolutely Nothing

The overlords of the U.S. banking system have been doing a lot of unusual things lately to cope with a looming recession brought on by the coronavirus outbreak and forced economic shutdown. Nearly every day, President Donald Trump and the Federal Reserve have been making new announcements and radical changes.

On Sunday, the Fed alongside a slew of other U.S. regulators like the Office of the Comptroller of the Currency have made it so financial institutions can make changes for debtors without oversight. The Fed revealed its decision would allow banks to reduce interest rates, extend loan times, modify loan terms, provide fee waivers, and offer payment deferrals whenever they feel it is necessary. In a heavily regulated environment prior to the covid-19 outbreak, financiers couldn’t do these things without setting off regulatory red flags or receiving massive penalties.

2019 Crypto Industry Assaulted With Manipulative Regulatory Policy

Right now, all of the so-called “much needed” financial regulations are being torn down like the Berlin Wall. The recent move to drop regulations follows Fed chair Jerome Powell’s decision to slash benchmark interest rates to 0%, inject trillions into the hands of private banks, and eliminate all reserve requirements for banks. U.S. financial institutions can not only modify loan terms as they please, but also loan as much as they want without any need for worrying about FDIC insured deposits. Just a month ago, however, financial regulations were quite abundant and U.S. officials from the Fed to the Treasury took aim at bitcoin businesses.

Austrian economists have warned of the adverse effects and inefficiency that government intervention and regulations have created for years. If government regulations were waived then the results would lead to more economic freedom. However, the U.S. two-party oligarchy wants full control over the private sector and the only reason regulations were dropped is because they know the economy would collapse if they did not remove these stifling financial requirements.

On February 11, Minneapolis Federal Reserve President Neel Kashkari said that the cryptoconomy and bitcoin are “like a giant garbage dumpster.” Later that week, Steven Mnuchin the Treasury Secretary told the Senate Finance Committee that new regulations focused primarily on cryptocurrencies were rolling out soon. Not to mention central bank governors worldwide, G20 finance ministers and the Financial Action Task Force that have regulatory guns aimed at cryptocurrency businesses and exchanges.

The only people who are protected by regulations and oversight are those who are engaged in parasitic behaviors. Austrian economists have noted multiple times in the past how awful regulations are to the economy and data has backed up their arguments.

Amid the economic calamity, however, politicians and regulators are quickly changing their tune. A number of Austrian-schooled economists over the years have explained in great detail why regulations stifle efficiency. Regulations always add hidden costs because compliance comes with complex hurdles and mandates. More expenses are handed down to citizens, as regulations make Americans pay for all types of redundant operations. Government guidelines against free markets make consumers deal with dull and non-innovative products because regulations place various barriers to entry. Legislative guidelines enforced by the arbitrary whims of bureaucratic leaders have devastated privacy and property rights. But since the start of the failing monetary system, politicians have created a framework that is riddled with manipulation and monopolies, and lawmakers know infrastructure would collapse if they didn’t remove regulations during the covid-19 outbreak.

Regulations have added hidden costs to our goods and oversight has violated society’s privacy and property rights. Another adverse effect of regulation is the fact that big companies simply move to less regulated countries in the face of the American regulators’ red tape and redundant oversight.

Hundreds of Federal Regulations Removed Throughout a Variety of Industries

The last two weeks of economic mayhem have caused people to question why we need regulations and all this KYC/AML crap at all. Whimsical regulatory rules have violated our financial privacy and it has made the economy inefficient. Parasitic politicians and central bank governors do understand that laissez-faire is the most efficient monetary attitude. Yet if they removed these legislative guidelines, government entities wouldn’t be able to create revenue from the backs of entrepreneurs and the working class.

Sunday evening’s decision by the Fed is just a small fraction of the regulatory requirements that have been removed since the covid-19 outbreak started. On March 22, free-market advocate and Openbazaar developer Chris Pacia tweeted a list of regulations the U.S. government has dropped since the crisis.

Pacia’s tweet further underlined that so far the American regime has released non-violent offenders from prison, they have allowed foreign doctors to practice medicine in the U.S., registered nurses can travel state to state without a license now, police officers have suspended arresting people for victimless crimes in a few cities, occupational licensing has been suspended, FDA regulations for medical products waived, and alcohol for the first time can be delivered to your home in some states.

So why do Americans need regulations at all? Especially when we know and data clearly shows that regulations only benefit a certain group (specifically the oligarchs). Why did they aim all the government guns and regulatory policy at free-market solutions like bitcoin during the last few years? The reason they attacked the cryptoconomy is because digital currencies like bitcoin represent true economic freedom and permissionless, financial prosperity.

Right now megabanks and monopolies created by the U.S. government are being bailed out. At the same time, American bureaucrats want ordinary citizens to foot the bill with higher taxes, austerity measures, hidden costs, and rabid inflation.

What do you think about the hundreds of regulations waived because of the covid-19 outbreak? Let us know in the comments below.

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