U.S. State Bank Closes Amid COVID-19 Market Recession. First Victim of Coronavirus?

In a decision by the West Virginia Division of Financial Institutions, the First State Bank of Barboursville, which operated with $152M in net assets, closed yesterday. As of today, its $140M deposits have been acquired by MVB Bank Inc. of Fairmont.

Knock-On effect?

According to an official statement by the Federal Deposit Insurance Corporation (FDIC), the small regional bank has experienced financial problems since 2015:

Today, four departments of the failed bank will be reopened as branches of MVB Bank Inc.

Gabor Gurbacs, a digital assets strategist at VanEck investments management firm, highlighted that the ‘cash-heavy’ profile of West Virginia may has contributed to this failure. According to Gurbacs, this collapse may be the first link in the sorrowful chain, and should:

expect smaller regional bank closures in cash-heavy states as people increasingly draw on cash deposits during the #COVID19 pandemic-induced restrictions.

Bitcoin (BTC) for Times Like This

Some blockchain experts are sure that the COVID-19 outbreak raged amidst the decisive phase of multiple social conflicts within the modern global system. Qiao Wang, Messari co-founder and product director, named four of them:

According to Wang, one should own Bitcoin (BTC) and Gold in these uncertain times to protect their savings.


Related
Bitcoin’s Safe-Haven Status Is Not Dead as Correlation to Gold Reaches New Highs: Report

As reported by U.Today, there are numerous studies that demonstrate that the price of Bitcoin (BTC) still correlates to Gold, and should therefore not be tossed aside as ‘Safe Haven’ asset.

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