"Crypto doesn’t discriminate"
Banks play a fundamental role in the finances of individuals; or at least until now. Today there is a new financial option called cryptocurrencies. Crypto has been gaining a place in the financial world. However, the majority still rely on banks and traditional financial institutions.
"A bank is a financial institution licensed to receive deposits and make loans. Banks can also provide financial services, such as wealth management, currency exchange, and safe deposit boxes. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or the central bank. "
Unfortunately, we need banks to get by efficiently in this economy. Whether it's depositing your salary, capitalizing your company or asking for a loan. For the majority, when asked what is a bank to them, apart from being the nightmare of many; a bank is a place that protects your money, provides loans, investments, among others, but even more essential banks are entities that must provide a service. Yes a service, thus should not discriminate in who can access it.
In most countries, banks are regulated by the government and must be held accountable. Taking into consideration the above, why are customers and companies request to open a bank account being rejected and in other cases, accounts linked to cryptocurrencies are closed down. If a country has not yet specified a crypto regulation law, how can a bank make unilateral decisions and decide to close or open accounts to those they deem appropriate.
Davinci Jeremie, the owner of Davinci Codes, has tried to open a company account in foreign banks and unfortunately, these requests have been constantly rejected because they are linked to cryptocurrencies. One of those banks was Euro Pacific, not surprising at all that the owner of this bank is Peter Shiff, a known opponent of Bitcoin and crypto in general.
Even more worrying, in Chile, they have arbitrarily rejected the opening of company accounts in more than one bank and with transparent reasons such as we do not work with companies that operate with cryptocurrencies. Davinci Codes has headquartered in Santiago de Chile, due to this, the company's finances have been very restricted. In Chile, has yet to have a law that regulates crypto, so far only a small scope that exists in the internal revenue service.
Why do banks and governments tend to reject or question and demonize the use of digital money?
Maybe because the creation of Bitcoin proposed for the first-time money that is administered by users without central authority or intermediaries, without a doubt, you do not have to be an expert in politics or finance to understand that the government will always want to have control of everything to collect their taxes. Banks, on the other hand, have always been the place to administrate people money. It is not a surprise that they dislike the competition, especially cryptocurrencies that in a short period has achieved the incorporation of many people with significant rises in the market.
"Governments control fiat currencies. They use central banks to issue or destroy money from nothing, using what is known as monetary policy to exert economic influence. They also dictate how fiduciary currencies can be transferred, allowing them to track the movement of the currency, dictate who benefits from that movement, collect taxes, and track criminal activity. All this control is lost when non-governmental organizations create their own currencies."
Cryptocurrencies do not discriminate; anyone can access everything that the digital ecosystem offers. The only limitations that exist today are the integration of people into this digital world. Once this is achieved, it will be easier to use, and there will be a better understanding of how digital coins work.
I hope you enjoyed it!
By: Carolina Pérez