The great Cypriot bank
account grab of 2013 may or may not be off. Sure, Cyprus's
lawmakers rejected a proposal that would carve a chunk out of the
deposits of every depositor in the country, but officials are back
for another try. The
latest proposal would nationalize the country’s pension funds
and steal a little bit less from bank accounts than was originally
envisioned. Banks remain closed and funds frozen while the details
are worked out. Perhaps unsurprisingly, people well beyond the
boundaries of the tiny island nation are scared shitless by the
idea that government officials might just help themselves to
private savings to pay ill-considered government bills. In just two
days, the value of Bitcoins has risen 15 percent as Spaniards
convert euros into the digital currency.
From
Bloomberg Businessweek:
Since Sunday, a trio of Bitcoin apps have soared up Spain’s
download charts, coinciding with news that cash-strapped Cyprus was
planning to raid domestic savings accounts to pay off a $13 billion
bailout tab. Fearing contagion on the other end of the
Mediterranean, some Spaniards are apparently looking for cover in
an experimental digital currency.
“This is an entirely predictable and rational outcome for what’s
happening in Cyprus,” says Nick Colas, chief market strategist at
ConvergEx Group. “If you want to get a good sense of the stress
European savers are feeling, just watch Bitcoin prices.”
The value of the virtual currency has soared nearly 15 percent
in the last two days, according to the most-recent pricing data.
“One hundred percent of that is due to Cyprus,” says Colas. “It
means the Europeans are getting involved.”
Follow this story and more at Reason 24/7.
If you have a story that would be of interest to Reason's
readers please let us know by emailing the 24/7 crew at
24_7@reason.com, or tweet us stories at ;@reason247. … Read More
↧