Looking at the present political unrest, the central bank of Kyrgyzstan decides to ban the significant cross-border services provided by the SWIFT network. The news gain limelight after an announcement made by Aida Karabeva, the representative of the central bank of Kyrgyz Republic.
The report says that in order to stop the capital outflow from the nation and to ensure the healthy financial system in the banking sector the decision of the central bank is appropriate.
In addition, the national bank is obliged to protect the assets of the financial institution and after examining the present scenario it is important to be selfish and think for the welfare of the nation.
On 7, October 2020 the Central Bank asked the local banks to “suspend their activities and strengthen security measures until the political situation in the country stabilizes.”
Where in the situation of the pandemic other countries decide to follow the online method and go cashless to prevent any physical contact, Kyrgyzstan citizens will now have to struggle and accept the cash method. This shall continue till the Parliament elections are settled and both citizens and state have reached a conclusion.
It is true to say that this situation is ideal for the decentralized financial system like cryptocurrencies, as it may act as an alternative in the state of political unrest and also in the COVID-19 pandemic.
However, the crypto industries emerged rapidly in various spheres and gained popularity but it’s still hard for the investors to accept crypto exchanges in their hard times.
The recent example is when America’s CFTC accused BitMEX, the recognized crypto derivatives exchange to violate the rules of money laundering. The U.S. Department of Justice (DOI) also arrested John McAfee in Spain for evading the tax.
Also, the crypto world may seem like a decentralized revenue-generating platform but requires a lot more labor and tools to stand on its own. Anyways, compared to the traditional financial system, crypto can provide big relief in such situations.
