Bitstocks take on secrecy in the banking sector
London-based Bitcoin market advisory and educational media house, Bitstocks, has released the third instalment of its ongoing YouTube series, Sight
Entitled The Secrets of Money this short episode quickly shines a light on the difference between anonymity and privacy, and how, when applied to the banking sector, the former is disastrous but the latter is essential.
The easy-to-digest five-minute video posits questions which attempt to crack open the deliberate mysticism surrounding what banks actually do with our money, and who controls the flow of liquidity in and out of these institutions. Michael Hudson, CEO & Founder of Bitstocks, says within one interview segment how, “... right now, if I go to Barclays bank and I say, can I have £10,000 out of my own account, the direct answer is simply, no. I have to give 24 hours notice. And the reason behind that is their liquidity levels are only known by them.”
Hudson goes on to reference the illegal tampering in the quarterly audits of the Lehman Brothers, whose collapse in 2008 set off the chain reaction leading up to the worst global financial crisis and economic downturn in 70 years; “When the auditors are in bed with the bankers, is that even transparent? Can we even trust that?”. A recent study by Bitstocks indicates that almost a third of the UK general public is of the same opinion*, with 29% stating that they either don’t trust or are unsure if they trust banking institutions, and an emphatic 63% stating that they don’t believe banks have their customers’ best interests at heart.
So what is the remedy? What is being suggested to address the lack of accountability within financial institutions and stop the abuses of power which caused so much hardship for so many after the financial crisis? In short, blockchain technology. We need to implement structures in which banks and the legal sector are “communicating directly on top of the transparent system and the beacon of light that is, ultimately, bitcoin”, finishes Hudson. To read more about how bitcoin could underpin the banking industry of tomorrow, check out a selection of article on the Bitstocks’ blog.
* Study conducted by Bitstocks in June 2020: 501 respondents in the UK, aged 18 - 65.