You cash is at the Bank ? It no longer belongs to you!
Did You know that the money in your bank no longer belongs to you?
What do you mean ?
It belongs to your bank, and you just have the right to retrieve it upon request.
So what, if I need the money, I get it.
Generally speaking, yes. Except if your bank does not want it.
What can prevent you from retrieving your cash from your bank?
Unfortunately, the list is long, and getting longer every day.
Beside trivial causes such as information system shutdown, employee unavailability, bank internal policies (amount, frequency of retrieval), bank customized application of regulatory constraints, we have recently witnessed a very worrying event since it happened in a well-established western democracy. We are referring to the decision by the Canadian government to use commercial banks to punish a very standard demonstration by truckers who were protesting against their restriction of circulation. The banks were asked to freeze truckers’ accounts if they persisted in their blockade.
This is the illustration of what happens when you do not own your cash. As it is the property of your bank, when the bank must choose between its own interests and yours, there is no hesitation.
Did You know that the money in your bank no longer belongs to you?
What do you mean ?
It belongs to your bank, and you just have the right to retrieve it upon request.
So what, if I need the money, I get it.
Generally speaking, yes. Except if your bank does not want it.
What can prevent you from retrieving your cash from your bank?
Unfortunately, the list is long, and getting longer every day.
Beside trivial causes such as information system shutdown, employee unavailability, bank internal policies (amount, frequency of retrieval), bank customized application of regulatory constraints, we have recently witnessed a very worrying event since it happened in a well-established western democracy. We are referring to the decision by the Canadian government to use commercial banks to punish a very standard demonstration by truckers who were protesting against their restriction of circulation. The banks were asked to freeze truckers’ accounts if they persisted in their blockade.
This is the illustration of what happens when you do not own your cash. As it is the property of your bank, when the bank must choose between its own interests and yours, there is no hesitation.
I’d rather keep my money in cash; at least, I will not lose my money !
Managing one’s patrimony is arbitrating between various assets on the basis of yield, liquidity, risks or time horizon. But there is one category getting very low attention : cash.
Cash for asset-sellers (real estate, stock, fixed income, financial product managers or seller) is the pocket in which they wish to dig to get a commission for selling.
Cash for individuals is their freedom to act or protect themselves. It felt as the solid rock, immune to loss of value. Unfortunately, it is not the case. Putting aside the problems of ownership, discussed in other posts, if the face value of your cash does not vary, the purchasing power (the amount of freedom attached) is largely inconstant. And there is the well-documented problem of inflation. But on top of that, your cash is stored in currencies that vary constantly in relation to other currencies, so your purchasing power in other monetary zones may be altered.
And this is not only a problem for so-called weak currencies. A small example, worth no more than an illustration :
At the end of 2014, a friend of mine, a Swiss resident, but having earned his patrimony in the eurozone thanks to the sale of his company, decided to buy a small residential building for investment purposes. Having spotted a nice lot for 6M CHF around Christmas, he decided from a common agreement with the seller to close the deal beginning 2015. On the 15th of January, The Banque National Suisse decided, without any warning, to let the CHF float, so it jumped from 1.2CHF/euro to 1.02CHF/euro. Immediately, the building cost the buyer 6M€ instead of 5M€. “He should have covered his change rate risk” will shout some financial experts! “But the BNS had held the CHF/euro rate at the same level for years” will answer most of the others !
“You never know” is what most of us will remember from this little story. That is why, at TAL, we have decided to offer to all the possibility to store everyone’s cash value in a stablefiat, thanks to our basket, to protect your purchasing power even in other monetary zones, because “you never know”.
Managing one’s patrimony is arbitrating between various assets on the basis of yield, liquidity, risks or time horizon. But there is one category getting very low attention : cash.
Cash for asset-sellers (real estate, stock, fixed income, financial product managers or seller) is the pocket in which they wish to dig to get a commission for selling.
Cash for individuals is their freedom to act or protect themselves. It felt as the solid rock, immune to loss of value. Unfortunately, it is not the case. Putting aside the problems of ownership, discussed in other posts, if the face value of your cash does not vary, the purchasing power (the amount of freedom attached) is largely inconstant. And there is the well-documented problem of inflation. But on top of that, your cash is stored in currencies that vary constantly in relation to other currencies, so your purchasing power in other monetary zones may be altered.
And this is not only a problem for so-called weak currencies. A small example, worth no more than an illustration :
At the end of 2014, a friend of mine, a Swiss resident, but having earned his patrimony in the eurozone thanks to the sale of his company, decided to buy a small residential building for investment purposes. Having spotted a nice lot for 6M CHF around Christmas, he decided from a common agreement with the seller to close the deal beginning 2015. On the 15th of January, The Banque National Suisse decided, without any warning, to let the CHF float, so it jumped from 1.2CHF/euro to 1.02CHF/euro. Immediately, the building cost the buyer 6M€ instead of 5M€. “He should have covered his change rate risk” will shout some financial experts! “But the BNS had held the CHF/euro rate at the same level for years” will answer most of the others !
“You never know” is what most of us will remember from this little story. That is why, at TAL, we have decided to offer to all the possibility to store everyone’s cash value in a stablefiat, thanks to our basket, to protect your purchasing power even in other monetary zones, because “you never know”.
“How did we reach this point of distrust in the regulatory system?”
Originally, regulatory bodies and texts were designed to protect clients from bank abuses.
So how come the vast majority of customers feel that they are imposed constraints limiting their freedom of benefiting from their own money?
Current applying texts are the result of anti-tax-evasion policies imposed by governments, anti-terrorism multinational measures, anti-money laundering measures, aversion for cash-payments, and global distrust between banks, especially for cross-border transfers.
The outcome is a litany of hurdles imposed by your bank every time you wish to do anything else than just paying for day-to-day spendings.
And not only for individual clients!
We, at TAL, have experimented a laughable situation: one of our French banks has refused a wire transfer to the FINMA, the Swiss Bern-based regulation body, because they did not know why we were working with the FINMA! A bank refusing to send money to a regulatory body because of anti-money laundering rules : the contest for the stupidest anecdote is open !
How can we still believe that all these constraints are for protecting us and for the greater good ?
Originally, regulatory bodies and texts were designed to protect clients from bank abuses.
So how come the vast majority of customers feel that they are imposed constraints limiting their freedom of benefiting from their own money?
Current applying texts are the result of anti-tax-evasion policies imposed by governments, anti-terrorism multinational measures, anti-money laundering measures, aversion for cash-payments, and global distrust between banks, especially for cross-border transfers.
The outcome is a litany of hurdles imposed by your bank every time you wish to do anything else than just paying for day-to-day spendings.
And not only for individual clients!
We, at TAL, have experimented a laughable situation: one of our French banks has refused a wire transfer to the FINMA, the Swiss Bern-based regulation body, because they did not know why we were working with the FINMA! A bank refusing to send money to a regulatory body because of anti-money laundering rules : the contest for the stupidest anecdote is open !
How can we still believe that all these constraints are for protecting us and for the greater good ?
“Stablecoin, an oxymoron ?”
In the cryptoworld, players have chosen to assume strong volatility and often distrust “fiat” currencies for their lack of underlying assets.
If euros or dollars exist only because of the will of central banks, why would cryptomoney not carry value, as they benefit from the strength and the transparency of the code they are made of ?
Then why create stablecoins, attached to a “fiat” currency ? Isn’t it the worst of both worlds ?
The answer is simple : stability and protection. Without stablecoins, how is it possible to store the value extracted from cryto volatility ? Arbitrating between coins could be an answer, but so energy-consuming and risky !
What is true in the crypto world is also necessary in the “fiat” world : there is a large need of protecting your cash from fiat volatility and inflation, from bank default risk and currency weakness.
That is why at TAL we have created a meta-stable fiat to stabilize and protect your cash in the “real” world. And that is why it will be followed by the creation of a stablecoin, attached to the TAL stablefiat. To get the best of both worlds !
In the cryptoworld, players have chosen to assume strong volatility and often distrust “fiat” currencies for their lack of underlying assets.
If euros or dollars exist only because of the will of central banks, why would cryptomoney not carry value, as they benefit from the strength and the transparency of the code they are made of ?
Then why create stablecoins, attached to a “fiat” currency ? Isn’t it the worst of both worlds ?
The answer is simple : stability and protection. Without stablecoins, how is it possible to store the value extracted from cryto volatility ? Arbitrating between coins could be an answer, but so energy-consuming and risky !
What is true in the crypto world is also necessary in the “fiat” world : there is a large need of protecting your cash from fiat volatility and inflation, from bank default risk and currency weakness.
That is why at TAL we have created a meta-stable fiat to stabilize and protect your cash in the “real” world. And that is why it will be followed by the creation of a stablecoin, attached to the TAL stablefiat. To get the best of both worlds !
"Each one of the top four French banks has a carbon footprint greater than that of the French territory"
But how is this possible? We are talking about companies that live on computers and paper, not blast furnaces or concrete plants!
Icing on the cake, the banks do it with your money, through the investments they choose to finance accordingly to their business model: the money you have in your account is invested by the bank into financially profitable projects with a leverage of 1 to 10. As a result, your €1,000 in your account makes it possible to lend €10,000 to companies or projects that contribute on average to emissions of more than 0.5 tons of carbon equivalent per year.
But, I don't want my money to be used for that!
Bad news, it's no longer your money. As soon as it is in a bank account, it belongs to the banks that use it for what they think is best for them, not for you!
Then join the TAL: we give you back ownership of your cash, and we will never invest it in projects that do not respect a responsible economy. To clean up the planet, Money Out of the Bank with TAL
But how is this possible? We are talking about companies that live on computers and paper, not blast furnaces or concrete plants!
Icing on the cake, the banks do it with your money, through the investments they choose to finance accordingly to their business model: the money you have in your account is invested by the bank into financially profitable projects with a leverage of 1 to 10. As a result, your €1,000 in your account makes it possible to lend €10,000 to companies or projects that contribute on average to emissions of more than 0.5 tons of carbon equivalent per year.
But, I don't want my money to be used for that!
Bad news, it's no longer your money. As soon as it is in a bank account, it belongs to the banks that use it for what they think is best for them, not for you!
Then join the TAL: we give you back ownership of your cash, and we will never invest it in projects that do not respect a responsible economy. To clean up the planet, Money Out of the Bank with TAL