In yet another case of mismanagement of fiat monetary systems, Yes Bank, India’s fifth-largest private sector lender is in the middle of a crisis.
Recently, the Reserve Bank of India had to take over control and impose a moratorium of 30 days while it worked on a “draft reconstruction scheme” under which SBI, India’s largest bank was likely to acquire a 49% stake in Yes Bank.
Meanwhile, customers face a withdrawal cap of Rs. 50,000(around $675 USD) per account for a month.
In a recent report, global investment firm Nomura warned that these repeated relief measures signal the comprehensive credit risks present in India’s financial system.
The shadow banking crisis that erupted in September 2018 has created a massive credit crunch in the system and the firm believes that even if the stability risks around Yes Bank are managed well, the fundamental problems in the telecom and power sectors may continue to trouble India’s banking sector.
Around the world, monetary policies intended to thwart economic crisis are failing and the bells of recession are ringing. People are looking for alternatives.
Bitcoin to the rescue?
The 2008 financial crisis was a clear motivation for the creation of Bitcoin. In the Genesis Block, Nakamoto even referenced the Times headline:
Chancellor on brink of second bailout for banks — a comment on the instability caused by fractional-reserve banking.
Banks and other financial institutions will keep failing and the government will keep bailing them out at the expense of their taxpayers. This financial system based on trust is broken as we have seen the banks fail their fiduciary responsibility time and time again.
Bitcoin fixes this.
Bitcoin cannot be subject to changes in any nation’s monetary policies. While countries going through an economic crisis will always impose capital control and prevent people from accessing their money, your Bitcoin will always be in your control. Bitcoin is not a hedge against recession but a hedge against fiat currency and mismanagement of monetary systems controlled by central banks and governments around the world.
In some good news, the Indian Supreme Court recently overturned the central bank’s two-year-old ban, imposed in April 2018 which prevented banks and other financial institutions from facilitating “any service in relation to virtual currencies.”
The Indian crypto markets are witnessing a rebirth after the verdict and major global crypto firms are making swift moves to acquire market share.
Qume is all set to launch its services in India and we are looking forward to presenting the world’s fastest crypto derivatives exchange to the people of India.
See you soon!