While both the Fed in addition to the mainstream media volition never say the truth on how solvent or insolvent a depository fiscal establishment is correct upward to the 24-hour interval when they larn nether or collapse, the International Monetary Fund a few weeks agone issued a novel study pushing for the elimination of cash every bit the way to continue job organisation human relationship holders from taking their coin out of domestic in addition to global institutions.
The fright of depository fiscal establishment runs in addition to all out depository fiscal establishment insolvencies are what are at the pump of the IMF's force to eliminate physical cash in addition to select all economies nether the govern of a digital organisation according to the one-time caput of Germany's Federal Association of High German Industry inwards an interview he participated inwards on Apr 21.
In its recent report, the International Monetary Fund (IMF) proposed to abolish cash in addition to recommended to adopt measures inwards gild to restrain its use. In an interview alongside Sputnik Germany, one-time caput of the Federal Association of High German Industry (BDI) Hans-Olaf Henkel said that this "could Pb to terrible consequences."
Henkel believes that ane of the principal reasons behind this proposal is the wish of financial institutions to force people to keep their coin in banks.
"The European Central Bank (ECB) does non wish that depositors to keep their coin under the pillow. If whatever depository fiscal establishment in Europe goes bankrupt, in addition to hence depositors select a guaranteed correct that the state volition provide them the total of up to 100,000 euros. But non more," the economist told Sputnik Germany.
So, if a depository fiscal establishment goes bankrupt, people who select savings of over 100,000 euros volition rest with nothing. Thus, many continue their cash non in banks, Henkel argued. – Sputnik News