Debanked

I would like to add a new word to the Bitcoin Lexicon: The debanked.

We have the unbanked – people who have no connection to the traditional fiat-based banking system. We have the underbanked – people who have an account but need to rely on alternative financial services such as money orders, check-cashing services, and payday loans. Investopedia

We now also have the debanked – people who have been denied banking services or live in countries with hyperinflation that has rendered their bank relationship irrelevant.

For an example of a debanked individual see the story of noted Bitcoin podcaster Peter McCormack whose bank apparently closed his account because he was a Bitcoin podcaster.

My bank has written to me telling me they are closing all of the four accounts I have with them. – 65 days notice – No reason given – I have banked with them for 25 years – All accounts are in surplus

https://twitter.com/petermccormack/status/1363898264878211072?lang=en

More details on the Peter McCormack story.

For an example of countries where entire populations are being debanked as a result of hyperinflation or failing economies – see Lebanon or Argentina.

“There is a population that does not feel welcome (in traditional banks),” he told Reuters, adding the advent of digital lenders could help the government by bringing more funds out of the unregulated shadow sector.

https://www.reuters.com/article/us-argentina-banking-digital/digital-lenders-lure-unbanked-argentines-out-of-shadow-economy-idUSKCN1RK196

There are many other countries in which hyperinflation or ineffective fiat bank systems are increasing the number of people being voluntarily or involuntarily debanked. As countries print huge amounts of money to fend off the economic effects of COVID, (Euphemistically referred to as Quantitative Easing, or 1984 NewSpeak for Money Printer Go Brrr.) we may see more countries suffer from hyperinflation and more people suffer from being debanked.

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