The banking crisis in Italy continues, Europe’s large bitcoin exchange set off panic buying frenzy
According to media reports, the Italy government has proposed to the Bank of Italy that Seattle (MontePaschi) implementation of crisis intervention or “bank rescue.”. The Seattle bank was founded in 1472, is the world’s oldest bank, the bank is currently facing a huge funding hole, need a lot of money for the reorganization of assets. The solution of Italy government at present is to increase up to 20 billion euros of public debt, but this figure is even enough to make the affected Bank of Italy can be maintained.
The rest of the funding gap is that borrowers will need to increase the amount of the loan loss reserve “for bad loans to make room for sale; according to Bloomberg data, the gap is quite large. Deutsche bank analyst PaolaSabbione said, in order to realize the reorganization of assets, the Bank of Italy takes about 52 billion euros, the bailout plan needs 30 billion euros to ease the debt crisis.
In addition, it also depends on the assumption that Italy united credit banks and other lenders really able to raise 20 billion euros by selling assets and maintain profits, this point is still uncertain, so it may allow taxpayers to fill the funding hole.
“Some publicly traded banks may raise some asset restructuring necessary funds, including the Bank of seattle… The government will have to fill the remaining part. But even so, at present, these funds are still not enough.”
In this financial crisis, Italy taxpayers will have a negative impact, and higher public debt will bring greater burden for future generations.
With Italy and its banks offer the uncertainty of contrast, bitcoin users enjoy books with distributed transparency, without charge or third party payment. More importantly, without bank participation, because bitcoin is a complete reserve system, which is different from the bank reserve system vulnerability.
The government cannot use as legal currency like bitcoin generation impose debt so backward, in this case, the world’s oldest bank crumbling in front of us, and the attraction of the rapid growth of bitcoin.
According to the figure below shows, when Bloomberg reported in December 19th in Italy to raise the public debt limit to save the bank, the European currency exchange in the next few days witnessed bitcoin panic buying frenzy. People also worry that Europe will further disturbing the election, which may threaten the euro, and exacerbate the eurozone crisis has swept through greece.
Similar to after the earthquake and aftershocks, bitcoin market has felt from Italy earthquake, according to the above data, from December 19th onwards, bitcoin is more and more high peak.
In addition, according to MarketWatch data, in December 21st, “and the buyers accounted for bitcoin trading volume is big”. So bitcoin breakthrough $800 to the cause may be partly because people turn to bitcoin in order to deal with the Bank of Italy crisis.
If you want to know more bitcoin related, with “money said” WeChat (micro signal: bishishuo), note: BtcTrade. Before entering the official exchange group.