A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
European Debt Reaches New High
In the first quarter of the year 2015, the European debt rose to a whopping €9.4 billion, reaching a new high debt/GDP ratio of 92.9%. Besides Greece, at least 4 other countries have debt/GDP ratio of over 100%, with Spain and France about to enter the “club of the three digits”. The people there can always hedge a part of their income in Bitcoin, so to make sure they don’t face any trouble in case of a capital control.
Greece Maintaining Capital Control
As we enter yet another week of Greece’s debt crisis, the people there are still made to bear the pressure of the country’s economic impotency. According to the recent reports, the capital control is still in play there, while the ban on abroad money transfers stay as well. It is time the world learns from this crisis and try hedging a part of their income in Bitcoin to exit such scenarios easily.
Barclays to Close British Accounts in Cyprus for Insufficient Balances
Thousands of British and other expatriate Barclays account holders in Cyprus will have their accounts closed by the bank in September, unless they have a minimum of £100,000 deposited. It would be, therefore, feasible enough to rely on local Bitcoin services for remittence and cash flow purpose.
New Zealand Central Bank Cuts Interest Rate
The Central Bank of New Zealand cut interest rates for the second time in six weeks, after which local authorities said they are likely to foster new expansionary measures to “stoke inflation in a context of slowing growth.”