Central Bank of Samoa warns about the dangers associated with digital coins like Bitcoin.
A recurring trend we have seen over the last few years is how banks continue to warn about Bitcoin and cryptocurrency. For some reason, banks are legitimately afraid of digital coins. This is not surprising, as digital currencies bring competition to the traditional financial ecosystem. The Bank of Samoa, feels now is a good time to warn about Bitcoin and other currencies.
Banks that warn about digital coins are always very interesting in their conjectures. It is clear that these institutions want to prevent consumers from losing their money. On the other hand, these are the same institutions that ask their clients to pay the bank if they want to access their own money. Double standards are being maintained by financial institutions for quite some time. The Central Bank of Samoa is no different as to its conduct in this regard, it acts in a similar way.
Likewise, digital coins are getting a lot of attention. In its warning, the institution mentions how there is information about, “get rich quick” under a scheme without digital currency. That’s true, since many of the Ponzi schemes appear every week. Most of these programs involved HYIP or cloud mining investments. Many people often lose money by investing in these programs. However neither, they are native to cryptocurrency. The number of frauds related to PayPal, for example, has been steadily growing as well.
In this regard, considering how digital coins are not issued by a bank, they often encounter criticism. How dare someone create an ecosystem where money can be distributed fairly and accessible to everyone in the world? Also, how can anyone do it without regulation, supervision or intermediaries ?, the idea alone is absurd, according to most of the CEOs of the banks. On the other hand, Bitcoin has been here for nine years, and will not disappear in the short term. The banking institutions worldwide earn money with the resources of their clients, they do not place anything in return their resources have in other activities, there is very little transparency in the handling of the fiat money of the client.
It’s no wonder banks are warning about digital currencies right now. The value of all cryptocurrencies and assets is increasing. More money is coming out of traditional finance in favor of digital currencies. It is a legitimate threat to the existence of these comments from banks and sometimes they do together. However, Bitcoin and the consortia will not replace banks in the short term. Neither should they do it, since there is no reason for it. However, digital currencies will be a much needed competition for the financial sector.
In summary, when a system such as the financial one that through history has not been far away has had an action that has caused major crises within the system, due to the mismanagement of the finances of the users who entrust these institutions, there is evidence as The success in the years 2008, 2009 that the cause of the financial bubble starts within the banks, globally. Therefore, these institutions have already realized that blockchain and bitcoin can displace them in terms of credibility and transparency. New ads are expected.
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