GoldMoney and Bitcoin Magazine have worked together to produce a documentary that attempts to capture the thoughts and feelings of Cyprus residents after their bank accounts were frozen in March 2013.
The Cyprus “bail-in” model of bank rescue, which seems to be gaining popularity, is simply frightening. Fractional reserve banking is built upon depositors trust in their banks, “for fractional-reserve banking can only exist for as long as the depositors have complete confidence”. Financial regulators are destroying their own system by making depositors fear for the safety of their money… they’re either that stupid or that desperate. Frightening.
Joseph T. Salerno sees the silver lining here arguing that Cyprus may bring about the unravelling of the current banking system and expose “the true nature of fractional-reserve banking for all to see.”
The Dollar Vigilante‘s editor-in-chief and Bitcoin ATM CEO, Jeff Berwick, is planning the first Bitcoin ATM. “If we did this now, and we are moving quickly to make this so, we would be the only functioning ATM on the island.”
The planned ATM will allow users to deposit fiat and receive Bitcoin as well as send Bitcoin and receive fiat in return.
In a bailout deal with the Eurozone Cyprus’s bank account holders are being forced to pay the bill…not troubled bank bond holders, depositors. “The illusion that depositors don’t need to yank their money out of threatened banks because they’ll be protected has been shattered.”
Come Tuesday morning Cyprus’s bank account holders could see their balance shrink as much as 10%.