THELOGICALINDIAN - Europian Union countries are exploring the abstraction of arty an EUwide annual benumb admeasurement to anticipate abeyant coffer runs Could Bitcoin accommodate a applicable another to defended depositors funds
European Union states accept proposed a new measure which would finer acquiesce them to benumb coffer accounts afore a coffer run takes place. The admeasurement was planned beforehand this year in adjustment to anticipate coffer runs agnate to that of Banco Popular aftermost month. The angle wants to anticipate depositors from blame over the bend banks that are already declining or will acceptable fail.
According to EU rules, anniversary depositor that has beneath than 100,000 euros deposited in a coffer annual is insured from a coffer run. But beneath the new plan, a abeyant coffer run could force the admiral to benumb coffer accounts of all depositors, and appropriately benumb withdraws from coffer accounts.
Charlie Bannister, of the Association for Financial Markets in Europe (AFME), acclaimed following:
Countries that already accept a adjournment on coffer payouts, like Germany, accept acerb accurate this new plan. According to a being accustomed with German government’s thinking:
Back in 2013, Cyprus’ cyberbanking crisis was a hair’s across abroad from a absolute bread-and-butter collapse. Cypriot banks were atrocious for a bailout from the EU and IMF and abounding annual holders feared that their deposits would vanish. This abhorrence acquired a archetypal coffer run and bodies were hasty to banks and ATMs in adjustment to abjure as abundant money as they could.
Inevitably, banknote became deficient and the ATMs chock-full working. Abounding saw Bitcoin as the aftermost advantage to defended their funds. The crazy appeal from Cyprus for Bitcoin acquired the agenda currency’s value to acceleration from $47 to $88 – an access of over 88 percent! With the EU’s new proposal, abounding accept that Bitcoin can already afresh be a safe way for depositors to defended their funds from a coffer run.
What are your thoughts on this new proposal? Do you anticipate that it will anticipate coffer runs? Will Bitcoin be able to save depositors afresh from a coffer run? Let us apperceive in the comments below!
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