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Biggest $235 bn Fraud in Banking Industry. Will Crypto Rise?



Recently, one of the biggest banks of Denmark, Danske Bank was reported for allegations for money laundering of almost 200 billion euros.

Unwavering the multi million dollar scam of the Fiat economy

How did the the financial crisis occur in 2008?

The financial breakdown of the US economy in 2008 was one of the worst of its kind. According to experts, the Great Depression of 1930 was far better than this financial collapse. Intense risks were taken by some of the major banks of United States, prominently Lehman Brothers. The People’s funds, which the bank had control of, was hastily spent to bail out many failing financial institutions. The step was prominently taken to prevent the world economic crisis but only short term achievements were accomplished, followed by which, the US along with the European economy had to face a lot of consequences. Stock market of the country plummeted and a global recession was experienced, where many people were unemployed for a long duration of time.


The cryptoverse proved to be their savior in such condition

The cryptocurrencies were coincidentally developed in 2009, with inception of Bitcoin by Satoshi Nakamoto. Effective decentralization was achieved through the cryptocurrencies, where the funds of the people were in the control of people only, and not any other centralized authority. The cryptocurrencies just provided them with another platform for various economic transactions, without gaining control over their funds. This was not the case for the traditional Fiat market, as the bank owners took fiscal decisions, which were in their own personal interest only. Security of the funds was at high risk, as they were on direct and easy control of banks. But Security, in case of crypto domain is the utmost priority and achieved through decentralization.

Another multi million dollar heist in Europe

Recently, one of the biggest banks of Denmark, Danske Bank was reported for allegations for money laundering of almost 200 billion euros. Following the revelation of which Thomas Borgen submitted his resignation from the CEO. The bank has been alleged for money laundering through one of its Estonian branch, where possibilities indicate connections with Russia, for suspicious transactions from 2007 to 2015. Almost 33% of the share value has been vanished due to the possible legal implications that the bank might face, from the penalizing authorities. In their opinion regarding the issue, the Bank personals cited the inefficiencies of their Estonian branch as the main reason for such activities.



Execution of such illicit activities has no room in the Cryptoverse

The regulators are fast asleep

When careful examination is undertaken of such incidents it is to be noted that, no serious measures seems to be taken. This particular money laundering is so open, yet the financial regulators seems to have been fallen deaf to the issue. But when it comes to the adoption of cryptocurrencies, the regulators are trying to gain access over everything. This indirectly indicates the consciousness of their future fallout, due to the adoption of cryptocurrencies.


Decentralization is maintained in crypto domain

However, as the authority is distributed among the users in the Crypto space, financial crisis at such scales is highly impossible. One must really pause and ponder over the thought that, such centralized financial institutions were initiated with so much trust and had years of reliability, yet, they turned out to become scammers. Therefore, trusting any single authority was not the solution at any cost. Let’s move towards a decentralized financial economy provided by the cryptoverse, where there is absolutely no room for such open criminal activities.



Such open extortions doesn’t exist in the Cryptoverse

The incident has been one of the biggest bank scandals of Europe and is absolutely unhealthy for the overall development of the country. There must absolutely be no choice, for such banks and other centralized institutions, other than, to reimburse the complete amount of their customers, back to them. They knowingly undertake such big risks without the consent of the stakeholders. $235 billion is not a joke when compared to the biggest scam in the cryptoverse which accounted only to $660 million.



It is due season that the adoption of Cryptos is far, as the inefficiencies are self explanatory through such holocausts

The matter of fact is that, the financial regulators allow such huge scams to take place below their noses but cannot tolerate the least developments and reliability provided by cryptocurrencies. It is now high time that people must move towards cryptocurrencies where no such diabolical decisions are made, whose entire cost, is burdened upon the people, for no reason. Faster transaction speeds, online nature, and there are lot many perks associated with the Cryptos, that people are missing out and are stuck with the Fiat Economy.


Ripple Updates: XRP Going Global, Taking over Swift, Gaming Industry



Swift is joining up with R3 on blockchain technology. R3 recently made XRP the first cryptocurrency available through its Corda settler product.

Ripple’s biggest competitor Swift is joining up with R3 on blockchain technology. Swift is the dominant player when it comes to international settlements. They currently have 11,000 members global payments network whereas Ripple currently has around 200. They have announced the partnership with the enterprise blockchain custodian R3. Basically Swift and R3 have developed a proof of concept that links Swift’s GIP payments network with R3’s platform to monitor payments flows, settle payments through their banks and receive credit confirmations. Now absent from the announcement was any clear statement that Ripple would play any kind of role in the partnership.

Basically, R3 recently made XRP the first cryptocurrency available through its Corda settler product. Swift’s statement did not mention the Corda settler but R3 in a tweet in a tweet specifically said that Swift will be using R3’s Corda settler.

Role of Ripple’s XRP:

Very interestingly, Brad Garlinghouse, the CEO of Ripple participated in the panel where Swift and R3 made the announcement but there is no direct mention of XRP or Ripple and this is only a trial so there is no guarantee that there are going to be using XRP for anything but that has not stopped XRP exploding on the markets after the announcement because the fantasy of XRP holders is that this will become true. However, it is quite suspicious to see all of the three (Ripple, Swift, and R3) on the same panel.

The CEO of Swift Gottfried Leibbrandt said that the big part of Ripple’s value proposition is the XRP  cryptocurrency, He went on to say that there we do find the banks are hesitant to divert things into cryptocurrency right now because of the volatility in these currencies. Gottfried has already put in his resignation letter and he will be resigning before the trial actually finishes. If the fantasy becomes true, it could be really big for the XRP holders.


Euro Exim Bank using XRP for cross border payments:

Euro Exim Bank, a London based bank that is primarily focused on providing financial services for exports and import companies will become the first bank to publicly announce that it is using XRP cryptocurrency for cross-border payments. However, the Euro Exim Bank is a very small bank but it’s a bank nevertheless.


Saudi British Bank testing Ripple’s Technology:

The Saudi British Bank said that it is one of the three banks with the go-ahead from the Central Bank of the country to test Ripple’s technology. Ripple’s global head of infrastructure and innovation Dilip Rao has said that Ripple is rapidly expanding its presence in the middle east and has targeted the region as a primary place for the early adoption of blockchain based payment solutions. However, the Saudi British bank has not clarified whether it plans to utilize Ripple’s blockchain based payments solution XCurrent or the XRP powered payment product XRapid which means that they are probably going to use XCurrent. It is still big however to get these big banks onboard but it’s going to be a challenge to move them from XCurrent over to XRapid. They are conservative organizations, they might want to save money and make more money but they actually want to try it and see if it works and if they don’t actually need to use the XRP token, they might just stick on XCurrent.


Ripple Selling Huge amounts of XRP:

Ripple has been selling huge amounts of XRP. They have sold half a billion dollars worth of XRP in 2018 and 250 million dollars worth of XRP in just the current week.


Ripple Entering the Gaming Industry:

Brad Garlinghouse specifically mentioned that games built on the XRP ledger are coming. Entering the industry would be tough though and it takes more than just the XRP fans to really carry it. There are so many players right now focusing their blockchain specifically on gaming such TRON, NEO, Coco’s BCX etc. So XRP is going to face a lot of challenges while getting in here but considering that they have sold $750 million worth of XRP recently, they have a war chest big enough to have an impact here if they are investing that in this industry. Brad Garlinghouse mentioned at the Davos that the gaming industry is one of the areas where blockchain use is underhyped. He said its incredibly interesting in terms of which underlying blockchain is most efficient. He thinks that they are a couple being built on the XRP ledger and he thinks that it’s going to be a very interesting space to watch in 2019.


XRP’s Social Wars

Recently there was a social media war between the XRP army and anybody who calls XRP as Ripple. For example, Kraken came out and said that basically, Ripple was the payment protocol who’s native current is XRP. They are not the only one that is confused. A lot of people are finding confusion that the company having the same name as the protocol. Some claiming that buying XRP, for example, is buying XRP stock and there are a lot of people who never want to hear Ripple mentioned in the same sentence as the XRP because it is very important for Ripple that XRP to not be deemed security. Thus we see the XRP army coming out and correcting the record all the time on anyone who says the opposite. This is kind of a new thing to the extent that we are seeing it happening in the past few months and it is really going to be dependent on the court proceedings that we see going on.

Basically, there has been an effort to rebrand XRP. For example, we saw that XRP did not have its own logo, so they made an XRP logo. But the currency so often has been associated with Ripple. Many people believe that XRP is a product of Ripple Labs because they are the key developers of it. What Ripple Labs really wants to see is to see themselves in the same way that Consensus works with Ethereum.


XRP: A Security?

Whether you are an XRP fan or an XRP hater, you should be concerned whether or not XRP ends up being security because just imagine the markets. If XRP is deemed security, it is seriously going to impact the current cryptocurrency markets. It would probably tank the markets in a very big way. Not to mention all the XRP holders who would get wrecked and Ripple labs who would get wrecked but if you are an XRP hater, you would probably be cheering for those things to happen. In the end, this court case is going to take a long time to determine.


XRP FUD regarding market cap:

A lot of FUD was going on recently regarding the market cap of XRP. Messari  basically coming out and saying that XRP may have a significantly lower market cap than its advertised on all of the sites where market caps are listed. Things like restrictions around Jeb McCaleb only being allowed to sell a certain amount of his XRP at any given time. There is a very strong narrative on XRP being in the top 5 list of cryptocurrencies that means it is very important for it to stay there. So essentially if there is a much lower market cap and the volume is much lower than it is actually advertised, it means that all these people who have very big interests in XRP, especially the team behind XRP will be able to sell a lot less if the volume is actually much lower than advertised.


What are your thoughts on XRP and Ripple? Tell us in the comments section below.

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Is the Banking System a Fraud?



There are many other loopholes to the working of banks in the economy, but for now, these should be enough to open your eyes to the banking system.

You’ve worked the entire four weeks until your bones were dry from fatigue, you spent sleepless nights working on a project or an assignment and even over worked your body to an unhealthy degree- at the end of it all, however, you have your paycheck in hand. You finally have your wage, or do you?

The bitter fact is that it’s not you but your bank that has received the wage. In our day to day lives we are dependent, more than anything on banks for the money that we earn- when it should be the other way around; that is, banks should be depending on us instead for the money that they offer to the world.

And when one pays close attention- the entire system appears to be absurd! How can a third party that had no role in the amount of work that we did and efforts that we put have a say in the amount of money we can withdraw and the number of times we can withdraw it?

Today we are here to unleash some facts about the banking system which will show to you how the whole banking system is a sham:


Are all banks broke?

Yes, this is no act of God, or a natural calamity or a tsunami- all banks from the beginning have been broke. After all, they have no money of their own- any assets that they appear to have were provided to them by their initial customers.

True, they earn small amounts of interest on the money that we deposit with them, but it is indeed not enough to give them amounts large enough, such as 10 lakh, which they can offer to a minimum 100 people at once. So where is the money coming from? Well, it’s all fall system that we will slowly unravel.


Fractional Reserve Banking

Now, the biggest fraud that banks can possibly play is that they go ahead and offer more money than they actually have and this is primarily known as Fractional Reserve Banking.

As mentioned earlier, banks have limited money supply- all the money that they have to offer is what we deposit with them so how come when a person applies for a large loan the banks are ready to give that money as though it was theirs. The sad fact is that banks are actually offering ‘your’ money to others when giving out loans- and the credit security they offer is not half as true as it would appear.


False Credit Creation

We will now see how the banks create false money in the economy. Supposing you deposited one thousand dollars with the bank; the next step by the bank would be to keep ten percent ($100) of it as cash reserve and use the remaining, $900 as money owned by the bank itself. So now the bank has your money, which is one thousand dollars for appearance’s sake and 900 dollars as its own money. Thus, the total money increases to 1900.

And now suppose you want your thousand dollars back- here’s what the bank will do- just like you deposited money with the bank, there are many others who deposited money with the same bank in a similar fashion, the banks will use a small percentage of the money deposited by various people and give it to you back as ‘your’ money.

This is all just a hollow scheme.


The Central Bank

Perhaps the most significant loophole in the banking system of the economy is The Central Bank and its activities and the biggest sham that it plays is the printing of money or deficit financing.

Whenever the money supply in the economy is falling, banks resort to deficit financing and print more money, but the actual amount of goods and services in the economy remains the same. So although now, instead of $100 you have $200, you cannot get an extra bag of rice because the total production was not increased only the paper money was.



Real rise in the economy occurs when the total production increases and not the total amount of money circulating in the market. There are many other loopholes to the working of banks in the economy, but for now, these should be enough to open your eyes to the reality of the banking world.

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France Yellow Vests Bank Run: Fractional Reserve Banking Fraud, Is Bitcoin The Real Solution?



The idea of a bank run is where essentially everyone goes to the bank and takes their money out of the bank. Bitcoin is where the real revolution lies at.

The idea of a bank run is where essentially everyone goes to the bank and takes their money out of the bank. The fact is that banks kind of doesn’t have your money and the bank kind of do have your money. If just you go to the bank and withdraw your money, the bank’s got your money but if everybody goes to the bank and asks for their money, the bank might not have your money. That is because banks practice fractional reserve lending.


Yellow Vests Bank Run:

In response to the Yellow Vests are going to be doing a bank run, the banks in France have been closing up. Maybe this is because they don’t want any violence at their branches. Not only banks but ATMs are also experiencing mysterious glitches where suddenly they are not working anymore. Now if you add in that to the fact that your banks only open from Monday to Friday (9 AM to 5 PM) anyway and that if you want to go to an ATM which has a daily withdrawal limit of say $500, it’s really hard to get your money out of the banks. It’s quite easy to put it in though. This all comes back to the idea of fractional reserve lending. How a bank can take a $1,000 and turn it into $10,000 is a bit of magic when it comes down to it.

For eg: A takes $1000 to the bank and you put it in his savings account. Now because of the fractional reserve lending idea, the bank only needs to keep a fraction of that money in a reserve. So they put $100 in the vault and take the other $900 and lend it out to B. Now B takes the $900 and goes to buy a car from C. Now C takes his $900 which he got from B to the bank and puts it in his savings account. Now the bank again put $90 in the vault and again lends $810 to D. This process repeats and continues but let’s just say it stops there. So A goes to the bank and tells the bank that he needs to withdraw his $1000 from the bank but the bank says they have only $190 in the vault because they lent all his money out. That is a very basic example of how it works but essentially, you take that to a large scale and the banks don’t actually physically have everyone’s money.


Now its ok if a certain percent of the population goes to the banks every day to withdraw some money as the banks are already prepared that 5% or 10% of the people are going to come and take out their money on any given day. But if everyone went to take their money out of the banks, then it becomes a big trouble for the banks because they simply do not have everyone’s money. Now we add into this a few different factors and we can see some of the real problems of the banking system.


One, of course, is that about 10% of the total money supply is in physical bills and coins. Then we have the debt factor. It is very serious because so many people have taken loans from the banks. People don’t actually have any money sitting in the banks, they just owe the banks a lot of money. So that is why it is quite difficult for everyone to do a bank run because a lot of people don’t have any money sitting in the banks at the first place and they owe tens of thousands of dollars to the banks. Looking at 2008, banks crashed the global economy and got bailed out which is a classic situation where there is socialism for the rich and capitalism for the poor. Some countries also have bail in clauses where the banks can take your money bailing in which is another crazy system.


Now, all of this fraud is because the banking system is probably a system of fraud, the business model of banks is fraud and it is enabled by the debt system and the fiat money system. The fact that the governments can just keep printing money is insanely broken and every time the government prints new money, your own money becomes worth a little bit less which is crazy again because you just cannot win. The banks and the government are always the winners and that’s a pretty bad game to be playing. The fiat debt backed backing system may be the biggest scam in history and yet we all continue to support that system.


The lies are so incredibly big and they are repeated so often that people start to believe them. Money lending and the idea of charging massive amounts of interest on people for buying houses, cars etc. has made people slaves to the banks. Interestingly, the Bible was quite anti-money lending. There are quite a few passages in the Bible about the dangers of money lending and how Jesus was anti-charging interest. Remember when Jesus went to the temple, he didn’t kick out the poor, he didn’t kick out the beggars or anyone else except the money lenders.


We have created a society where the money lenders are in charge of everything and that has not given a good result to our society. We understand by the Yellow Vests protestors out in France protesting against the system because the government has supported a system that has enslaved the citizens.


A quote by Henry Ford:

“It is well enough that people of the nation do not understand our banking and monetary system for if they did, I believe there would be a revolution before tomorrow morning”.


It seems that the French are starting to figure this out. They are sitting at a table, trying to play a game where everyone else holds the cards except the regular citizens. That is why the French people think that doing a bank run is a good idea.

Although the Yellow Vests have a very big voice and are very prominent, they do not have 100% support of everyone inside of France. A successful bank run would require everyone or near everyone to go and take their money out of the banks but that is not actually happening.


Plan Bitcoin:

Bitcoin is where the real revolution lies at. Bitcoin is meant to take the power away from banks. Bitcoin encourages people to stop supporting the banks but we are still stuck to this old system. Bitcoin is definitely the money of the future because sound money is powerful. The fact that the governments print money whenever they want is a broken system. The fact that you can only access your money when the banks say so is totally broken as it’s your money and you should have access to it 24X7, be allowed to send it to whoever you want to and whenever you want to send it. That is why the idea of a bank run is incredibly powerful but for a bank run to succeed is very difficult.


Jimmy Song has weighed in on the idea of bitcoin as a revolution. Jimmy Song said:

Revolutions, we are seeing are aiming at changing who is in charge. However, what they should be doing is taking back the power for themselves. It starts with bitcoin. If people would realize it then violence would not be necessary because they could take power away without the violence. It would be possible to change things for the better without putting lives on the line and risking jail time. It is possible to have peaceful revolutions with bitcoin.

These were the thoughts of the writer on can the French Bank Run happen and how does bitcoin play into all of this. Tell us your thoughts in the comments section below.

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