The Brazilian central bank announced on Monday that the National Monetary Council (CMN) has decided to temporarily suspend the distribution of dividends within financial institutions, for example to increase the remuneration of its administrative staff.
In an official announcement, the central bank reported the following:
The prohibitions apply to payments related to the basic dates between the date of entry into force of the decision and 30 September 2020 and to payments made during the period of validity of the regulation.
According to the Brazilian central bank itself The aim of this measure is to avoid that important resources are not used up, as they are extremely important to get credit and offset potential losses in the future.
He also explained that the institutions have a good level of capital and liquidity, both at a level that can be considered extremely convenient and at the minimum operating requirements.
All of this was done on behalf of COVID-19. The corona virus shakes the economy and the way it manifests itself significantly. On international level The progress of the corona virus has accelerated the growth of centralized digital currencies, as various governments identify the use of physical money as a possible risk factor, as Deutsche Bank noted in this tweet:
The COVID-19 pandemic is accelerating the rise of the central bank # digital currencies As many governments see cash as a potential risk factor. This will likely add to calls to move to #digitalcash after our #dbresearch colleague @ MarionLaboure pic.twitter.com/TnotaTKouK
– Deutsche Bank (@DeutscheBank) April 3, 2020
The first bank was already broken by the corona virus
While the central bank is talking about the good health of financial institutions in the state of Virginia, we have the first case of a bank filing bankruptcy on behalf of the coronavirus, as reported by BeInCrypto.
Some analysts have already expected this to happen because any major change in the economy directly affects banks. It doesn’t seem like much, but this is the first bank and there could be many more behind it.
Now we have to wait and see what the next steps of this saga, which appears to be moving towards a more positive side from the perspective of the cryptocurrencies created to deal with this type of crisis.
Do you use telegram? Join the Telegram trading community to get exclusive buy and sell signals for cryptocurrencies, educational content, discussions and project analysis!
Join the Cryptocurrency group on Facebook to comment on the latest news, share the best blockchain projects and trading signals, and win the market
Disclaimer of liability. Read moreRead less
As a leading blockchain and fintech news company, BeInCrypto always strives to comply with strict editorial guidelines and the highest journalistic standards. With this in mind, we always encourage and encourage readers to do their own research into the information contained in this article. This article is intended as news and is for informational purposes only. The topic of the article and the information provided may have an impact on the value of a digital or cryptocurrency asset, but is never intended. Likewise, the content of the article and the information contained therein do not intend and do not intend to provide sufficient information for a financial or investment decision. This article is not expressly intended as financial advice, it is not financial advice and should not be construed as financial advice. The content and information in this article have not been prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making an investment decision. The author of this article may have any amount of Bitcoin, cryptocurrencies, other digital currencies, or financial instruments at the time of writing, including but not limited to those contained in the content of this article.