European Banks Explore Measure to Prevent Withdrawals

With cryptocurrency and decentralization on the rise, banks and other financial institutions find themselves in an awkward position these days.

This is especially true in the European Union, where many experts feel there will soon be another bank run. To counter this threat, some EU states have been contemplating measures that would prevent bank customers from withdrawing money from accounts. These temporary “freezing” measures may go into effect very soon.

Most people who have bank accounts think they still control the money stored in them. That is not the case, as the bank retains full custody of the money inside bank accounts. Customers need permission from the bank to move and withdraw their money from said accounts.

Making a transfer to a different bank account requires authentication through the bank’s servers before the funds change hands.