Does your Bank Account Protect your Funds against Bankruptcy?
We have heard of Bankruptcy, but most would have not experienced it as such. Bankruptcy literally means that when a person or business has reached to a situation where any of their outstanding debts couldn’t be paid anymore. This is when the entity who may be a person or business files a bankruptcy in the court that he/she or they are insolvent.
Ultimately, the people who may be affected by the Bankruptcy will be the creditors and consumers or customers in many cases who might have invested a lot of their hard earned money in various forms as savings, stocks, direct investments, bonds, lending loans, selling products & services etc.,
Now, the law of the respective land takes over and according to the bankruptcy laws, the creditors are generally given the relief first through whatever is left in terms of assets or takeovers by other businesses etc., The people who will bear the heat will be the common man who may have invested in the business in some form or the other who naturally loses his/her money which is owed to them.
Various researches and surveys point out that the bankruptcy trends are alarming in the Western World especially in USA, UK, and Europe to a large extent. Thereby the insolvency laws have been tightened in the last two decades in various countries to protect the businesses/individuals and the creditors as well. However these are mostly on paper and when it comes to actual implementation, bankruptcy is still a nightmare for a common investor.
The most unfortunate situations would be a “BANK” itself goes into insolvency or become Bankrupt. This is a peculiar case where Banks goes insolvent not because that they are unable to pay their creditors for the most part. Instead, Banks itself goes Bankrupt when large debtors or businesses who have acquired large loans don’t repay it back to the Bank. Here once the Bank decides to file Bankruptcy, the ultimate people who suffer are the innocent people who have just deposited their own money into the banks and haven’t lent any of their hard earned money to the Banks expecting returns through profit making of the bank. The depositors do get interested in their savings, but that is not the sole purpose common people deposit their money into banks. It is for various reasons such as safety, security, enabling transactions for their self and their businesses purposes, people deposit money into their bank accounts for day to day operations or just to keep it safe.
In these cases, if the bank goes Bankrupt, the depositors are left in vain most of the times or at the very least the government comes into rescue who indirectly takes the Taxpayers money which again is people’s money and give it back to the same people. The bank and the debtors to the bank get the relief or get bailed out through tax Payer’s money while the money which was used by the bank to lend these large debtors.
While our technology and Financial sectors are moving rapidly towards Blockchain and Fintech, Cryptocurrency along with Fiat Money now needs banks which can enable transactions between multiple Cryptocurrencies and Fiat Currencies. Whilst these types of Banks emerge very soon “Protections of Funds” and Protection against “Bankruptcy” shall be a vital factor determining where to deposit and do transactions for both individuals and businesses.
This is where Next Generation Fintech startups are having a key role to play and one of the Fintech company which is about to launch its operations. Cashaa is a next-generation global banking platform which offers multiple features for both individuals and businesses.
Now that we are focussing more on Bankruptcy in this article, we shall not be going into details of Cashaa’s offerings and its benefits of having a Cashaa Account or Cashaa Wallet or both. You could always visit the Cashaa’s official website for more information on the above features, roadmap and white paper etc.,
With this level of a truly next-generation banking platform and especially being Global in terms of Multi-Currency Including Cryptos, Customers Safety of Funds is of mountainous importance. Especially, Cashaa being headquartered in the UK, the most common and foremost question shall be if “Cashaa is covered by the regulatory Compensation Schemes” of the UK Govt. There are basically certain statutory requirements under the UK laws to hold deposits and Investors Compensation Scheme for Customers of the authorized financial services firms. This further means that these protection scheme/s can pay the compensation if the firm is unable to pay or when it becomes bankrupt or insolvent.
The exclusive frame work of Cashaa here makes it the safest, strong and stable because Cashaa shall not be operating like traditional Bank where it uses their Customers money to invest, lend, or risk. While becoming a next-generation banking platform of this scale businesses and individuals will have millions or billions of dollars in their accounts, these Compensation Schemes are not really enough to compensate in reality.
As a Transparent Fintech Company, Cashaa has very clearly devised its Vision to go with 100% Fund Protection Scheme with European Central Institutions (Yes, You Heard it right, 100%). What is actually means is that 100% of Cashaa’s Users Funds shall be deposited in a segregated account with “Bank of England” with “NO Access to Cashaa” to lend, invest Customer’s Money or risk in any form.
Thereby, fundamentally there is literally NO RISK of Customer’s funds be it Fiat or Crypto as Cashaa doesn’t even use it.
Now this being said, Cashaa’s Launch which is scheduled for end of this month is being looked forward by most that are aware of Cashaa and there is no doubt a revolution is underway in the Banking World.
It is time now for people to rethink if your Bank really provides protection for your Funds. And the history of bankruptcy especially of Banks tells us story of people’s money (Taxpayer’s) being grabbed to bail out these.
Safety and Protection of Funds being the Highest Motive and Value, Cashaa shall be a truly Next Generation Banking platform and demolish Bankruptcy!
