Apparently, the banking closure good for cryptocurrency thought is now in action, albeit in the very weird cycle of life where something evil for one industry is good for another. Coronavirus pandemic has put the global economy on the verge of collapse, but there may be something good for the cryptocurrency sphere.
The prevailing pandemic was already wreaking havoc on many industries, and now the extended orders of stay-at-home will have its negative impact on the stability and health of the financial system. The banking closure good for cryptocurrency thought originated with the pandemic issues.
How is banking closure good for cryptocurrency?
In a Monday letter, in the Conference of Mayors, the newly appointed head of Office of the Comptroller of the Currency (OCC) Brian Brooks mentioned this. Moreover, he highlighted the compounding risks as coronavirus pandemic, and the social unrest would likely exacerbate the economic uncertainty.
Brooks stressed the impact of the prolonged lockdowns on the small business revenue, the commercial real estate loans, and the risks of damage of property as the mayors and governors decide about the time when to lift the enforced lockdowns.
Furthermore, Brooks also presented the anecdotal evidence that some of the banks are facing with the loan delinquency rates for the small scale business.
He furthered that the commercial real estate market had been greatly impacted by the stay-at-home orders, as the buildings that serve as collateral for the real estate loans face the huge threat of property damage and risk of being looted due to the lengthy vacancies.
Brooks also wrote that the failure to comprehend, forecast, and then reserve for the risks based on reliable data deprives the bans of key financial risk management tools at that time when its safety depends on it. He furthermore pointed out the requirement of wearing a face mask while visiting a bank, as it could be beneficial for the bank robbers.
In times like these when banking closure good for cryptocurrency and digital payment system thought is already prevailing owing to the pandemic situation, Brooks’ statement is only reinforcing the idea that all the concerned areas should transform to cryptocurrency.