The European Banking Authority (EBA) announced on August 17th that it would like to reduce interaction with the banking sector to a minimum with immediate effect. Why the news is to be viewed with concern and why Bitcoin is now more than ever the asset of the hour.
The report of the European Banking Authority (EBA) of August 17th looks like most of the dry reports from supervisory authorities at first glance. Under the title: “Corona virus: EBA wants to limit interaction with the banking industry to a minimum”, it is written that one only considers consultations with banks that are classified as critical. Otherwise you would practically want to put the exchange on hold. Just like the discussion about whether the suspension of the obligation to file for insolvency should be extended further – insolvent companies no longer have to file for insolvency until the end of September and can thus legally procrastinate insolvency – this message is also concerned.
Clear message: there is no more time for regulation
Apparently, the EBA still sees very uncomfortable times for the banks. You let go of the lines so that the banks can direct all their energy to saving themselves. One does not want to burden the banks with additional regulatory issues, can be seen from the report. In view of the rising corona numbers, there are many indications of a second wave and thus an even greater increase in further loan defaults. Authorities and politicians seem to be fairly aware of the seriousness of the situation, otherwise the EBA would not make such a notification, nor would it be discussed whether the suspension of the obligation to file for insolvency should be pushed back.
Bitcoin and gold more important than ever
As in some The comments explained, securing the portfolio with real assets is more important than ever. Gold and Bitcoin in particular, as anti-cyclical values, can represent an important risk hedge in the portfolio. Should the loan defaults turn out to be more severe than expected, there would be another bank bailout by the state or taxpayers. The consequence would be a further destabilization of our economies and the associated fiat currencies. After all, a rescue can only be financed through an expansion of the money supply by the central banks. Ergo, the anti-euro or anti-bitcoin would benefit enormously as an independent store of value.
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