Ireland Banking Crisis in the 1970 - It's all about trust

The website is a constant source of stories about the progress and development in the area of blockchain and bitcoin.

In an article today, they asked the question if we really need banks ?

There a referencing to very interesting point in history of Ireland, where the country didn’t have any banking due to strike which lasted from 1st of May up to the 17th of November, around 7 months without any banking services !

Amazingly the daily life during this period showed that

“the services of the clearing banks proved by no means as indispensable as would have been expected before the dispute.
Ireland had a population of 3 mln at the time and their 11,000 pubs and 12,000 shops became the substitutes for the banks.
The system worked because it was based on local knowledge and trust. Those who were exchanging checks and IOUs knew each other well.“

Any kind of paper was used as cheques and at the end of the strike:

The accuracy of their judgment was demonstrated when the strike ended with most pieces of paper turning out to be worth the value that was written on them. There were few insolvencies, and overall, imports, which were expected to be badly hit, were largely unaffected.

Bringing that story the our digital world, it showed that “It’s all about trust”

Fast forward 47 years to the present day and we have a global decentralized peer-to-peer system in place, and like those using beer mats in Ireland during the banking strike of the 1970’s, it is based on trust

So where will be the banks in 10 years time, can they keep the trust of their customers ?

You can read the full story here.

This blog entry was fully produced within Evernote and published using the Cloudburo Publishing Bot.

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