Zimbabwe Banks Lack Cash Reserves To Honor Customer Withdrawals
The country of Zimbabwe is not associated with financial stability by any means, yet things have taken a turn for the worse. Now that cash supplies are nearly non-existent, banks have to turn customers away. An excellent breeding ground for Bitcoin adoption, or will a different solution save the country? Even though various countries around the world are contemplating to go cashless in the future, running out of cash is not what most of them have envisioned. Unfortunately for Zimbabwe, that is exactly what happened. Not that this is a complete surprise, mind you, as the country has been....
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A recent survey by The Zimbabwe Standard has shown that a number of banks in the central business district of the country’s capital, Harare, has long queues to withdraw cash with others running out of cash by midday. This demand for cash is fuelled by a lack of trust in an impending introduction of bond notes by the apex Reserve Bank of Zimbabwe. Although its governor John Mangudya says the bond notes would not happen within two months, the latest development better highlights the growing need for a cryptocurrency like Bitcoin as a dependable option for users. Why Zimbabwe banks lack....
Crypto Broker, Voyager, has decided to resume its cash withdrawals on its app. Users shall be able to make cash withdrawals from the application, this news comes after Voyager suspended trading, deposits, withdrawals and loyalty rewards for over a month. The cryptocurrency lender has panned to restart the customer access to withdrawals from August 11, […]
Banks around the world are figuring out a way to keep their business afloat, and the customer will be paying the price for services rendered in the long. Things are getting particularly worrying in Belgium, as the banks want to charge a fee for withdrawing cash from an ATM in the future. Other financial services might be targeted as well, although no definitive proposal has been drafted yet. This is another step in the right direction for pushing people to alternative financial solutions such as Bitcoin.
Beijing-based virtual currency exchange Vircurex has frozen most of its digital currency withdrawals effective immediately, claiming it no longer has the reserves to cover customer requests. The freeze will affect all bitcoin, litecoin, feathercoin and terracoin withdrawals. A message on Vircurex's site says it will create a new balance type called 'Frozen Funds' covering all balances in the aforementioned currencies. The company maintains it won't be shutting down, saying it intends to "gradually pay back the losses". That Vircurex had a reserve shortfall had been known for some time,....
The working paper traces the effects of operations with CBDC through several scenarios and concludes the Fed will have it under control. On Tuesday, the United States Federal Reserve released a study on the possible effects of a retail central bank digital currency (CBDC) on U.S. monetary policy implementation. The study, dated April, was a staff working paper titled “Retail CBDC and U.S. Monetary Policy Implementation: A Stylized Balance Sheet Analysis.”The paper considered four scenarios that illustrate the potential effects of a retail CBDC on monetary policy from the perspective of....