Bitcoin-Friendly Privat Bank nationalized by the Government of Ukraine.
When a banking institution does not fulfill the role for which it is bound by Laws and Precepts, national governments are obliged to take care of the interests of their clients and users, this may be the case that we will deal with in this article.
That is why, the Ukrainian bank Bitcoin-Friendly the largest PrivatBank was taken over by the government, following the mismanagement that carried out its administrators. The government, in a statement released Sunday, mentioned that it seized the bank in order to avoid a possible financial collapse that could disrupt the country’s economy.
In this regard, the statement reads as follows, “The government is now a 100 percent owner of PrivatBank and guarantees the uninterrupted functioning of this institution and the safety of its clients’ money.”
It is mentioned that the decision of the government comes after certain bad decisions by the bank, manifested to the history of loans granted to companies and people and now have problems to honor these loans, after the reports were made public, the value of bank bonds have been reduced by 50%, this information is very worrisome for the country’s financial system.
It is known that Ukraine has a prolific Bitcoin community, with a significant number of people using digital currency to make online purchases, among other possibilities of use. PrivatBank became the first banking institution in the country to offer an option to accept payments at Bitcoin for merchants who sell online.
It is known that the bank added last year a new payment option on its online payment platform, in it customers can choose payments in bitcoin and transfer in hryvnia “fiat currency of Ukraine” bitcoin equivalent, you get by scanning the code QR which is in the merchant payment gateway, of course, after this process the trader will receive the equivalent in hryvnia or euros, as the trader prefers.
Equally, it is still unclear whether PrivatBank’s nationalization will have an impact on its policies favoring cryptography since the government will be directly involved with the banking operations in its majority. The nationalization was supposedly adopted after the bank received a very negative media coverage, after following its questionable practices in the granting of loans. On the other hand, it is mentioned that the managers of the banking institution voluntarily transferred the administrative control in order to assure the interest of the clients.
Of course, now after the nationalization of PrivatBank may be an ideal launching platform for the Ukrainian government to encourage and promote the adoption of the digital currency in the country, also the likelihood that the government does otherwise may be a reality. In any case, PrivatBank’s actions under the new administration can have a considerable impact on the country’s bitcoin ecosystem, this is all an uncertainty that needs to be cleared, only time will tell. New announcements are expected.
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