In our country we are going through economic crisis which is why a lot of companies are shutting off and reducing the production to adjust things.
In the meantime banks are now being exposed. Let's have a Bigger look at Picture.
Digital Wallets - A New Form of Bank
Banks came up with new digital wallets advertising it as if we own our money. Every bank have own application to access account.
I only keep some fiat in bank for daily spending and expenses.
Ever since economic crisis become a serious problem I and people have started facing problems like when we send money or try to Withdraw money it Gives Error.
Everyone are aware of traditional Banking system how banks use our money and when we need them they don't care. It is just same thing but a big trouble in situation where economic crisis are arising and companies are shutting off is a threat that banks do have money in treasury to give it back so it's not safe at all.
Perks of Low USD Reserves
Our state bank USD Reserves is at all time Lowest which is resulting a huge 12% difference in buying/selling USD.
Currency is depreciating fast and people are converting from local currency into USD.
So, While buying USD from Banks we have to pay RS 256 for 1 USD but when we sell 1 USD bank give us RS 225 back.
This huge difference is either because of our state bank doesn't have any USD Reserves left or banks don't Get to buy USD from state bank since there isn't any USD.
This is based on real happening like you can below
Banks are short of dollars and withdrawal isn't possible for big amounts.
Hive Backed Dollar (HBD) is a Solution
Trusting centralized entities like banks and than exchanges on crypto is same as we don't own our money.
A true Decentralized system in crypto is where we can keep money safe and sound.
Everyone is saying crypto needs a Decentralized Stablecoin for avoiding such situations we are facing now.
Hive Blockchain already have a Decentralized Stablecoin known as $HBD which is in working state and offers 20% of APR on saving while on the other hand bank steal our money giving 3% APR.
In the end after all banks are somehow getting more exposed and people are realizing where they are keeping life savings doesn't belong to them.
I have reduced balance on bank to almost zero and kept some cash for expenses becoming own bank.
Pretty sure people living in country going through economic crisis will find it relateable and let's just stay safe and hope this hard time won't last long.
