Categories: Opinions

Banks Are The Best Custodians If You Don’t Want Your Money Back

In the current status quo, no entity pertains over more power than the banks. They are the sole central property attached to all forms of valuables, be it material or fiat. Banks act as monitory authority to all forms of financial transactions and also as a reserve storage for material assets. But what happens when this absolute power can be exercised as monopoly to attain a certain objective? Surely, the results would be condescending to all fairness that is expected from an entity that is regarded as the sole guardian to the financial realm.

Such events of great prominence have taken place in Venezuela over the past 10 days, as around £1.2 billion (R 21 billion) in gold assets as foreign reserves of Venezuela have been blocked by The Bank of England as substance to manipulate change of political regime in the country. The move from BOE comes after the UK and other European leaders have demanded that incumbent Nicolas Maduro and his government step down after the country has been seen driven to massive poverty and inflation recorded above the 1,600,000% mark recently.

The gold reserves held by the Bank of England since last year have been frozen on the request of assembly chair Juan Gauido, who has proclaimed himself to be the legitimate leader of Venezuela last week and his claim has been followed suit by many European countries and the United States. The 35-year old opposition leader Gauido wrote to The Bank of England and the Prime Minister of the United Kingdom Theresa May as:

I am writing to ask you to stop this illegitimate transaction.

If the money is transferred it will be used by the illegitimate and kleptocratic regime of Nicolas Maduro to repress and brutalize the Venezuelan people.

The motive behind such drastic measures taken by the BOE is to curb the aggressive selling of gold reserves by the Maduro government to fund-raise the country’s currency.

The situation in Venezuela is worsening by the day as Maduro refuses calls to hold new elections this year and Venezuelan people continue massive protests all over the country as well as a mass exodus of refugees from the country. The country has seen a great increase in crime rates over the past months as some have even resorted to illegitimate gold mining in order to fund for basic necessities.

Governments are supposed to react politically and pick sides according to their interest, but the real question to be asked here is of The Bank of England that they justify means to have entitled themselves in taking such radical steps to exercise their power as monetary authority over another country’s political influence. The negative pragmatism shown by the BOE is another chapter in the list of manipulation that the banks find themselves involved with.

By freezing Venezuela’s gold in their safe, the BOE has deprived the country of 15% of its foreign currency reserves.

Sir Alan Duncan, minister of state for Europe and Americas revealed on Sunday that this had solely been the bank’s decision. He said:

The Bank of England holds a significant amount of Venezuela’s gold. This is a decision for the Bank of England, not the government.

While The Bank of England maintains that it provides seamless and impartial custodian banking services to all its customers, it has been understood that it has denied two gold transactions from the Maduro regime over the past months, citing to “compliance related reasons”. Even if the move by BOE is merited on the basis to end Maduro’s chaotic regime, it has caused hundreds and thousands of Venezuelans that have gone bankrupt to go unaided.

Now imagine if the situation had come about over cryptocurrencies such as Bitcoin being pertinent as a form of currency and store of value, would anyone but the incumbent holder of the asset have power to manipulate it? Absolutely not. With digital assets, no central authority such as banks are supposed to exercise any power with regards to a person or entity’s financial assets. No matter what amount, it is stored digitally and cannot be accessed by a third party by any means. It presents an ideal solution in the current model of world finance, where banks can be powerful enough to turn regimes and be responsible for the adversity of millions of people.

Bitcoin is termed by many as the gold of the future and by other strong proponents as a replacement to fiat currency in the future. Its impartial status, however tarnished against claims of laundering and crime, cannot be questioned. It ensures a complete decentralized mechanism, free of the influence and over-influence that banks exercise in the status quo.

Once authorities recognize that cryptocurrencies cannot be stopped from reviving the financial change and liberation it offers, it will come out to act as custodian to all forms of assets. All gold and all cash will be quoted digitally and the best part would be that you WILL get your assets back as you require, when you require. The choice has been made simple, go to the banks if you don’t want your money back, as Maduro and Venezuela have found out, or bring forth Bitcoin and concurrent cryptos, that would offer a secure outlet of reserve that will always return your value.

Fitting how crypto influencer and leader Anthony Pompliano says: Long the Bitcoin, Short the banks!

Razi Khan

Researcher, Electrical Engineer and a teacher, Razi is one who takes great intrigue in the prospects of blockchain and cryptocurrencies (BTC in particular) while contributing a critical approach over the subject regularly. Contact the editor at editor.news@blockpublisher.com

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