The global economy has suffered through many busts and booms leading to prolonged recessions. During these economic downturns, governments have instituted capital controls, money seizures, and austerity measures. In these times of unrest, it’s nice to know people can always depend on Bitcoin. Also read: Cash Culture: Bitcoin Is a Savior in a World that Demonizes ‘Big Bills’
As the Global Economy Shudders State Officials Clamp Down On Citizens
The global economy has been quite the roller coaster ride, to say the least. Many of the nation-state economies are suffering and indefinitely crumbling. This can be seen in areas likeVenezuela, whose sovereign fiat currency has inflated by over 700 percent. Countries like Greece are in so much debt that the citizens who reside there are witnessing turbulent times. While the country’s markets fall by the wayside authorities from the region, have clamped down on Greek residents.
In recent months, the Greek Tax Administration has rigorously collected debt from citizens in the country. From January to April 2016Greek officials seized “428,465 bank accounts” according to a local publication . Since 2015, bank account seizures per month have increased 7-fold.
Greek tax officials also want seizure activities to become more prominent, as the General Secretariat of Public Revenues asked if the daily limit could be raised.
A War on Cash
InChina, capital controls and money seizures have also risen exponentially. Since the Chinese stock market crash in June 2015, the country’s government has moved towards monitoring its citizens’ wealth.
Capital controls have made it so citizens of China can only send certain amounts of funds outside the country’s borders. These regulatory policies have spurred many in the region to smuggle gold and cash.
At the Vancouver International Airport inCanada, Chinese travelers smuggling funds has increased yearly. Last year, according to documents, authorities seized $6.4 million from Chinese citizens at that one airport. This year, law enforcement confiscated $13.5 million found by customs agents. The number accounted for 70 percent of the $18.7 million seized from travelers residing in many nations.
In the U.S., where the economy is also struggling, law enforcement has cracked down on those carrying large amounts ofcash. This September the South Bronx Police Service Area 7 confiscated $18,000 from a man carrying a box cutter. The NYPD alone has seized at least $347,000 in the past couple years from the gravity knife law, prosecution settlements, and false arrests according to New York outlet Village Voice .
Born Out of the 2008 Crash, Bitcoin Is a Global Solution