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I wonder if they fear higher liquidity in cryptos leading to lower liquidity in bonds.
by suff 8y ago
I wonder if they fear higher liquidity in cryptos leading to lower liquidity in bonds.
- sn41 8y agoI have not seen a cogent explanation for the ban, other than their volatility. I suspect the ban is because of the fact that governments are wary of cash outflow from the country. This is a problem with developing countries, especially. I think probably crypto currencies are being equated with "hawala"[1]. [1] https://en.wikipedia.org/wiki/Hawala https://en.wikipedia.org/wiki/Hawala
- UncleEntity 8y agoMy (off the cuff) theory is they want the money to stay in the banks and the reason is the same as for them getting rid of large denomination bills to make the friction of holding cash higher. Can't really recapitalize the banks if everyone has their money on some blockchain or in their mattresses.