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 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.
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.
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.
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.
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.
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.
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