Big Banks, Digital and Crypto Currency

I’m not a conspiracy theorist but it is odd that during the global push away from hard currency to credit/debit cards, crypto currency and ultimately government owned digital currency, banks with national ATM networks are closing branches while small local banks open branches. It is even getting harder to get cash from a big bank’s ATM. With branches closing, the ones that are open often have long lines and machines that are out of cash, or out of order.

Our bank, no names but its initials contain B_A, closed the branches in towns adjacent to ours, reduced lobby hours to weekdays only from 9-5, and consistently has at least 1 of the 2 ATMs out of order – too frequently both are down. Another national bank, again no names, but whose first name starts with a W has closed branches in surrounding towns as well, and rumor has it the branch in our town will close shortly.

I’m not implying a connection between the growing global push for credit/debit cards and digital currency – and acceptance, even call for it, by Milennials and Gen Zers – but it is odd that national banks close branches while small local banks open branches. That would seem to indicate a reason other than reduced traffic at brick-and-mortar locations.

The internet generations are all for the change to digital currency citing convenience while ignoring the obvious dangers – cyber theft, fraud, accounts being locked erroneously, accounts being locked due to political or social views or actions, and accounts being completely erased for actions the bank, or worse, the government, deems unacceptable. China’s Social Scoring System should be a glaring red flag warning of the dangers of eliminating hard currency transactions. In addition to the control aspect, going digital also provides a mechanism to track every transaction, providing governments and big business the ability to trace peoples’ spending and movements. OK, the latter is already done via your phone, but that tracking isn’t connected to your financial accounts – unless of course you have put all of them on your phone for “convenience.”

Crypto currency holds its own issues. While providing anonymity with full transaction transparency to “eliminate” fraud, the value of an individual currency unit can be volatile as it is based on the value people are willing to assign to it today. This presents the very real threat of pyramid schemes, and that, in this writer’s opinion, makes them a significant risk to having as a significant part of your portfolio. As more and more currencies are created, the value of each “brand” rests solely on how much the market thinks it is worth. Anyone remember Beanie Babies and how they went from priceless to trash almost overnight? Millennials and Gen Zers, Google it.

I’m not proposing there is a coordinated scheme to force out hard currency, but I am sounding the alarm about current and growing trends. If you’ve been to a stadium, arena, theater, or even on a plane, you’ve been met with “credit/debit card transactions only”. This accelerated during Covid under the guise of keeping us safer by not exchanging cash, yet we all used the same pen to sign our receipt, hmm. Before you join the crowd disavowing cash in favor of fully electronic transactions, take time to think about the risks and threats that come with it.

www.RetiredandInspiredat55.com 10-09-2023