This is surprising data. As much as PLN 30 billion in cash appeared in circulation. And for the first 3 months of this year! Poles pulled them out of banks for fear of blocking their funds in their accounts?
Cash flooded the market
In December 2019, there was approx. PLN 238 billion in circulation: PLN 233 billion in banknotes and PLN 5 billion in coins. Now this value has increased to PLN 269 billion. Thus, an additional PLN 30 billion has appeared in the last quarter.
Cash comes every quarter, but it is a matter of PLN 5-6 billion, rather than 30, as it was now.
– I suspect that people were worried about closing banks and suspending online financial operations – He said money.pl prof. Marian Noga, economist and former member of the Monetary Policy Council. – Older people remember martial law. At that time, banks did not operate, and no one had heard of online operations. So only cash mattered – added.
That’s bad idea?
– I remind you that customer deposits are protected up to 100,000 euro. Even if the bank collapses or burns, we will recover this money – explains prof. Leg. Mentioned 100,000 Euro is the limit for only one bank. So if someone has accounts in as many as 3 banks, they will recover 300,000. euro from the Bank Guarantee Fund – experts calm down.
So are Poles panicking unnecessarily? A little yes, but it also shows that today there is a growing number of people who no longer trust banks and are looking for alternatives to the current financial system – also in terms of storing money. This is a chance for cryptocurrencies.
On the other hand, WHO appeals not to use banknotes because they increase the risk of coronavirus infection. Today, even in a large part of stores you can find messages asking to pay by card in place of banknotes and coins. This is only a step away from introducing a total ban on the use of cash!
The said limit of 100 thousand the euro can be changed by means of laws that parliaments can easily pass. In the background, while central banks conduct research on CBDCA…
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