The Gilets Jaunes, also known as The Yellow Vests may use cryptocurrencies to power their “bank run.” The banking move was announced on 7 January, aiming at the destabilization of France’s financial system by using social media accounts.
The movement has termed the bank run as a “Collectors’ Referendum.” In this latest demonstration, the public is expected to withdraw their savings from the banks and other financial institutions, at once, on 12 January. Although no mentions of the cryptocurrencies have been made yet, the demonstration can potentially benefit the cryptocurrency sector.
The bank run is indeed an act in which a lot of people withdraw their money from a particular bank. It is usually done when the public fears that the respective bank might not be able to function in the future.
In such a situation, the public may use bonds, insurances, gold or cryptocurrencies in place of the fiat currency. The decentralized structure of the blockchain technology, offering independence from banks, is certainly attractive because banks are closing up in the French small towns where the yellow vest movement draws most of its strength from. Along with that, some protestors were recently seen wearing the Yellow Vests saying “Buy Bitcoin”.
So it can be expected that the Yellow Vests may ask their supporters to turn towards cryptocurrencies. Recently, the success of blockchain-based money transfers in Venezuela has shown a way to the public across the world to opt for blockchain in a state of political turmoil.
Although the Yellow Vests may have taken the inspiration from history, it is important to note that in the past, bank runs happened due to uncertainty and rumors rather than on a voluntary basis. For example, the bank runs during the Great Depression and recently in the 2007-08 financial crises happened naturally. Hence, it would be a challenge to pull out such a grand scale bank run. Nevertheless, the cryptoverse may eye such an opportunity and show the world its true potential.
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