In 2016, here in Mozambique, one of the banks that operated in the square had to close its doors, an order that was decreed by the country's central institution, the Bank of Mozambique.
The reason for the closure of the financial institution that held the largest number of national shareholders was the fact that the Bank in question had several structural and payment liquidity problems for customers who had their value saved in the institution. It should be noted that the bank referred to, until 2015 was the largest deposit taker nationwide, but it had irregularities and ran the risk of insolvency.
But how does a bank get to have these problems
The 'Novo Banco' as it was called at the time was a mostly Mozambican capital bank, its national shareholders held almost the totality and control of the bank and among the partners there were also members of the ruling party. The bank had the 'reputation' of granting large loans to the 'comrades' in power, as they control the country and were not required to guarantee the loans made.
The 'comrades' in power had almost a free pass to make big loans (under the hood, of course) and they took as long as they wanted to return the amount. In compensation, the bank was awarded concessions that other financial institutions were not entitled to (corruption). It was simply a bank to manage the problems of the ruling party and with that they were guaranteed immunity.
But that all changed until the bank began to show signs of insolvency, Well look:
The bank had limited capital and as every bank works with money from customers, it no longer covered it to close gaps opened by arbitrarily granted loans
More money came out of the bank than came in and the bank began to show signs and attract the attention of the Central Bank
The Central Bank, which until then, had not heard about problems (and I honestly don't know how) sent an audit to an independent company which, less than 1 year later, discovered serious structural problems in the financial institution and with that the bank decreed the bank's closure and exhaustive research on all of the institution's managers.
Investigation was not enough, it needed to show action
The auditing company delivered its report and the central bank proceeded together with the national prosecutor's office to arrest all those involved in the Bank's scheme. But, the biggest losers with all this mess, the customers, were left without access to their money due to the bank's insolvency and only in 2018 after the merger of the 'novo banco' with another bank they begin to withdraw their money out from the Bank.
They had 'obligatorily' been waiting for two years to receive the money and even when they started to receive it, they could not withdraw larger amounts because the central bank and the bank that agreed to pay the debt of the 'novo banco' had agreed to do so, and as an agency regulator the central bank had the right to intervene so that the bank would honor its commitment.
What To Learn From This Story
Although there are legal methods to open a bank and be able to serve clients with their services, there are institutions that simply do so as a way of 'putting money in their pockets' and as they were directly connected with the ruling party and a lot of these loan debts it was for people 'high' in power, in the end who get harmed was always the common citizen.
Measures were taken and the dishonest managers were arrested but the citizen remained penniless for the next few years due to the state bureaucracy.
That's why it's always good to use Bitcoin Cash
Nobody likes to be without their money and when that happens several doubts go through their minds such as: 'I will recover my money and recover how long it will take' as well as other thoughts go through the head.
Using Bitcoin Cash to store, move or even spend it is the best way to stay protected, let's see:
Bitcoin Cash never lets us down, it can be stored in a wallet controlled by the user and completely without maintenance fees and when you need to use it, it only costs cents of the dollar to do so.Bitcoin Cash can be used anywhere in the world 365 days a year 24 hours a dayIt is not issued by the state and does not need your intervention to make payments or even spend at a home of convenienceBitcoin Cash is digital money that is most accepted by merchants worldwideUsing Bitcoin Cash the individual is their own bank
Final considerations
The story I quoted above may seem fictitious but it is not, the bank dubbed 'novo banco' actually existed and was closed in 2016 due to major irregularities and insolvency, leaving its customers without access to their money for a long 2 years.
The saddest thing is that, whoever pays for errors and problems with financial institutions or others, it is always the common people who are the customers, the companies that have insurance end up calling them and everything is solved, but what about the people! !
These are left to their fate until the whole situation is resolved, and imagine how many families have been deprived of life savings because of the bank.
This is where Bitcoin Cash plays a very important role in protecting the individual from trouble like this. Bitcoin Cash owners never face this problem and not to mention that because it's anti-inflation it even more serves the purposes of the common man, and the ability to be used anywhere in the world and at any time in an unprecedented addition.
Anyone who has their money in Bitcoin Cash can be sure of one thing:
'Only you are responsible for your finances and no one can get in the way of it, the best thing is to always have your money in Bitcoin Cash for storage, make payments or even to replace'.
Use and abuse (in a good way of course) Bitcoin Cash 😎.
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Disclaimer: The story mentioned in the article is true but does not constitute financial advice, it is for education and entertainment purposes only.
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Hopefully, more establishments will also open their stores to accept BCH as payment. Reasons why we cannot take away from FIAT ccy is because it's difficult to find stores that accepts BCH for payment. The more establishments accepting BCH, the more consumers will be encouraged to store BCH rather that FIAT.