Economic pressure is being felt everywhere and Egypt is no exception. As of March 29, 2019, Egypt has limited how much money its citizens can withdraw from their banks. Individuals are limited to withdrawing up to $640 per day and companies are limited to $3,200 per day.
Fear of bank runs
The central bank governor Tarek Amer said on a talk show on Sunday that close to $2 billion has been withdrawn from Egyptian banks in the past three weeks.
“We found that individuals are withdrawing money from the banks although they did not need it ... they withdrew 30 billion pounds in the past three weeks. We want some discipline. We live in a society and we have to think of others,” Amer said.
Similar restrictions have recently been implemented in Italy and were implemented in China during the Hong Kong protests in 2019.
Global markets have been in free fall since February as people all around the world have been fleeing to cash. If more countries around the world begin implementing bank restrictions then there could be a global bank sector crisis.
Bitcoin was created as a global safe haven, especially in times of crisis. An Egyptian bank limit solidifies the legitimacy of global decentralization. As the global economic crises worsens everyone is reminded of the need for alternatives to fiat currency.
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DISCLAIMER: This site article does not contain financial advice. Any and all market analysis is solely the authors opinion.