Bitcoin has always been the granddaddy of cryptocurrencies, which is why reaching nearly $20,000 in December of 2017 was a moment to be cherished by most enthusiasts and traders everywhere. When it began to sink into oblivion in 2018, many were upset not just about their own financial losses, but by the idea that cryptocurrency was some sort of a hoax – an illegitimate scam that was easily manipulated and hard to control.
Since April of this year, bitcoin has shown new promise by growing in price and increasing its position on the financial ladder. However, it has also shown a great level of maturity never witnessed before with any other cryptocurrency in the space. When Binance was hacked and ultimately lost more than $40 million in BTC funds, many were surprised (and excited) that instead of falling back several steps, bitcoin rose beyond the $6,000 mark, then the $7,000 mark and finally the $8,000 mark.
About three years ago, if that hack had occurred, bitcoin would have likely taken a huge stumble and would be rolling around in the gutter right about now. This time, however, bitcoin showed great strength and an ability to withstand outside market manipulation. Its price still changed, but it changed for the better, and this got everyone’s hopes up.
Unfortunately, not everybody feels the same way. Among those who still doubt bitcoin’s prowess is the Reserve Bank of Malawi (RBM), which recently issued a warning to clients saying that bitcoin is “not legal tender” and that it “shouldn’t be used in the place of fiat currency.”
The bank’s governor offered a statement saying that cryptocurrencies are not recognized by the institution, and that customers should avoid using them
Many Banks Fear What Bitcoin Can Do to the Financial Space
In addition, the statement also reads that the bank holds no sway over cryptocurrencies. It does not control them, and it does not regulate them. Thus, customers should be wary in the sense that if their stashes are ever stolen, the bank will not step in to replace the funds or investigate the thieving party.
This is simply a classic case of banks vs. crypto. Several traditional institutions, it can be argued, are afraid of the decentralization that crypto can bring to the financial arena, and fear losing control over customers’ finances.
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