Kyrgyzstan: Central bank suspends SWIFT transactions
The bank is suspending SWIFT transactions due to the unstable political situation.
The Central Bank of Kyrgyzstan has suspended cross-border transactions through the SWIFT financial network amid the turmoil over the country’s controversial parliamentary elections
Aida Karabaeva, an official representative of the National Bank of Kyrgyzstan, announced in a statement on October 7 that SWIFT would be temporarily suspended in Kyrgyzstan.
Karabaeva said the bank decided to suspend Bitcoin Rush transactions to prevent capital outflows from the country and keep assets safe. The executive claimed that the bank would allow SWIFT transactions again as soon as the situation in the country stabilized:
„These measures are necessary to ensure the security of the system and the security of assets. The National Bank is monitoring the situation and once it stabilizes, the banking system will resume normal operations.“
Karabaeva’s statement is in line with the Kyrgyz Central Bank’s recommendation that local financial institutions temporarily suspend their activities due to the complex political situation. On October 7th, the National Bank of Kyrgyzstan issued an official statement asking the commercial banks and lenders in Kyrgyzstan to temporarily suspend operations:
„In order to ensure the security of the country’s financial and banking sectors and protect the assets of financial credit institutions, the National Bank of the Republic of Kyrgyzstan recommends that commercial banks and financial institutions temporarily suspend their work on October 7th and step up security measures until the political situation changes Situation in the country has stabilized. “
The background to this measure are the violent protests in response to the parliamentary elections in Kyrgyzstan on October 5 began
The demonstrators saw these as unjust. After the massive protests , the local electoral authorities canceled the election result on October 6th.
Kyrgyzstan is just one of the many examples of the imperfections of the traditional banking system compared to the crypto industry. In contrast to traditional banks, with large cryptocurrencies such as Bitcoin ( BTC ) there is no central party that decides how the customers‘ funds are handled.