Today marks the 90th anniversary of Proclamation 2039. While the historic event occurred nearly 75 years before Bitcoin was created, the anniversary is a reminder of why the premier cryptocurrency was created and why it’s important to consider owning one.
What was Proclamation 2039?
For one week from March 6, 1933, banks in the United States were closed by order of President Franklin Delano Roosevelt. Roosevelt had only been sworn in less than 48 hours before and was already making history.
During the public holiday, no one in the entire country could withdraw, transfer or deposit money. The move was in response to a series of U.S. bank runs that began during the Great Depression that developed after the Wall Street panic of 1929.
Confidence in the financial system was lost. Fearing a rapid decline in the value of paper money, American citizens began to rush to exchange paper money for gold. The Federal Reserve Bank of New York’s gold reserves became so depleted that they fell below regulatory limits, leading to Proclamation 2039.
The week-long holiday allowed government officials to prepare legislation that eventually became the Emergency Banking Act of 1933.
Bitcoin was created after the great financial crisis | BTCUSD on TradingView.com
Why it’s a reminder to buy Bitcoin
“I can assure you that it is safer to keep your money in a reopened bank than under the mattress,” said President Franklin Roosevelt. Trust in banks was broken and governments intervened again.
The tone in the financial industry today is ominous, with the vast majority of analysts expecting a significant recession and another crash reminiscent of the 1929 collapse. A similar lack of faith and confidence in the financial system festers.
Bitcoin was born in 2009 in the aftermath of the Great Recession as the government again bailed out the banking system. The decentralized cryptocurrency cannot be shut down by the government for an impromptu vacation.
Bank runs are not necessary with BTC because as long as you own your private keys, you are your own bank. The offer is controlled by mathematical code and cannot be devalued. All the issues that led to Proclamation 2039 would not exist on a Bitcoin standard.
While the still-young cryptocurrency is far from being able to replace central banks or the current monetary system, it will allow users to access their assets during the next major financial crisis, no matter how badly the banks messed up this time.
90 years ago today, FDR shut down the U.S. banking system to stop the widespread bank runs that occurred in the post-Wall Street Panic era of 1929, as the Great Depression worsened.
This is why I believe in it #Bitcoin. No one can close my bank. pic.twitter.com/Azir5fanEp
— Tony “The Bull” (@tonythebullBTC) March 6, 2023