China banka scams shows importance of financial freedom with bitcoin...

[aysg76]

Some of us might be aware about the ongoing protest in the province of Henan in China as thousands of people are unable to withdraw their funds from the banks.

This is seem to be largest bank scam in the country after the four small banks in Henan province refused to pay the customers after they went to withdraw the funds from the banks but were unable to do so and till then the protest are going on there.The official of bank clims the system are being updated or in maintanence but have not communicated with them after that and people are protesting out there.

So what's the safety of your funds in these banking institutions? You are unable to withdraw your funds only and have to take the street of protest for it?

The four banks that were the focus of the protests are believed to have frozen a total of 39bn yuan ($5.8bn; £4.9bn) of deposits

See how the protest are going on in the country and people are getting injured just to get their funds back as it's their savings and they can't let banks scam them but are being mistreated:



The ongoing protest are getting violent day by day and authorities have claimed to give the funds back to the extent they can :

Advance payment will be released to customers with a combined amount of less than 50,000 yuan savings in one institution," it said.

"If the combined amount of a single institution is more than 50,000 yuan, the advance payment will be made successively, and the advance payment arrangement will be announced separately."

The regulators asked customers to contact the association from 09:00 local time (02:00 BST) this Friday.

But in the latest news the authorities have deployed tanks outside the banks to counter the protest and restricting people to enter the banks in Henan province :



There is lot going on in these provinces at this time as people are eagerly waiting for their funds while the bank scams and protestors being suppressed by the forces and officials through these cheap tactics and when you will look into the matter there are many disruptive images for the protest going on.

So this is why China doesn't want bitcoin because it can provide freedom to the people and they won't let it happen and you would find social media restrictions also there and they want full monopoly there but under these people are being suppressed and bitcoin is hope for them but they are being taken away from it.

The bank getting scams and declaring your funds as investment products and completely restrict you from using your own funds is sign of how centralised chain of authority is curse for the society.

This is where bitcoin empowers you and your funds are your own.BTCBTC

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Tanks outside banks

Henan province bank protest

[Upgrade00]

At this time, none of the news coming out of China is surprising.
China continues to increase their totalitarianism style of leadership, to the obvious detriment of the citizens. The government wants to control the people and as such, need to control the flow of money.
This is not possible with Bitcoin, hence the outright ban on it.

In other less stringent countries, Bitcoin might be the solution, but no one can yet live solely on it as their basic currency, creating the need to hold fiat to a certain extent.

[Charles-Tim]

Chinese government have no two reasons to ban bitcoin and cryptocurrencies that are decentralized to an extent, they know their citizens are populated and they want the total control. Only the wise Chinese that know about bitcoin, privacy and freedom can understand this.

[Moneyprism]

this is a concern for all of us that even large institutions such as banks are no longer credible.. even the government which is the banking regulator is not responsible and instead puts pressure on customers, even though they just want their money back.. this is the reason why I don't too much trust in banking

[Hydrogen]

For many years, people believed banks were the safest and most secure place to store their wealth. I wonder if that is changing. Banks have accumulated a significant amount of negative headlines recently. Once bankers made great efforts to align their reputation and name brand with integrity and stability. It seems the ethics of banking could be cyclical in the way that some claim climate change is. They go through phases of being somewhat moral followed by phases of the inverse opposite.

If the reputation of banks is damaged. I wonder how long it would take them to recover. Could it create a vacuum for other emerging upstarts to topple banks from their places on the top of the economic mountain. There are some who predicted this could occur.

Can a culture of business or banking be sustainable over the long term, if it is built on a foundation of greed and corruption. This may be a crucial question that will be answered in the future. The concept of friendship being magic is a bit too cringe for most. What do people think of greed and corruption being magic. Maybe not a good type of magic, I'm thinking.

[jrrsparkles]

Just take China away from this, no matter where we are living if all the customers of a bank try to withdraw all the deposits at once then banks can't able to provide it because in reality all those money is in digital form only 10 or 20% is in real hard cash as far as I know. Now talking about China they always tackle a protest in this way there is no democracy there so we can't expect any rights for the citizens from those leaders.

[Rruchi man]

See how the protest are going on in the country and people are getting injured just to get their funds back as it's their savings and they can't let banks scam them but are being mistreated

Money issue is always a delicate issue like i always and will always say, if this issue is not handled as quickly as possible, the tanks that the government have put in front of those banks will not be able to stop the people who have been affected that will get more violent by the day as their patience wears out. I doubt that this situation however will have a strong effect on the opinion of the Chinese government on crypto currency as it is a known fact that they are quite a rigid set. It will take more than these, maybe a series of events for their opinion to change or be forced to change.

[amishmanish]

China has time and again proved itself has a communist muscle man state. Their quarantined entire cities during covid, and now they bought tanks to control citizens. It paints a really bleak picture of most populous country in the world. I have also seen that banks around the world are failing lehman brothers failure, was the reason of 2008 recession. Could it be a new cycle setting in. We need alternative economic model to banks. I think crypto can play a major part in this.

[blockman]

It's easy to solve this, if they're solvent and honest, they'll just tell what the root cause of it. But if it's the actual government that steps in on this and brings the cause, I feel bad for those people.
They'll never get back their money and that's how the government that they've got works. This is a lesson for those customers that they should have deposited their money elsewhere or just keep the cash on their safety vaults on their homes.

[Jody.Drummer]

I don't know what the reason is that Chinese banks make an action that is detrimental to its own citizens and reduces public confidence in financial deposits is a very fatal act. This is a risk in one control and where you will only depend to behave with both the government and the bank.
It's hard to digest when this kind of government silences ownership. On the one hand we have known to restrict citizens from investing in assets they have no control over, but the world will see this as a warning. That we too could end up with the same suspension of accounts. While there is still time, switching finances to Bitcoin is the only way so that we can secure finances with complete control.

[Hispo]

I don't know what the reason is that Chinese banks make an action that is detrimental to its own citizens and reduces public confidence in financial deposits is a very fatal act. This is a risk in one control and where you will only depend to behave with both the government and the bank.

I agree with you, even though we all know that the Chinese govenment is highly authoritarian and centralized we would have guessed that there was in their plans to keep or even increase trust on their banking institutions, helping the spreading and adoption of its CBDC.
Maybe this is the case of some person in power within the bank which took advantage of their position to misuse the funds of the people to their own personal gain and against the policies of the bank itself, probably leading to a massive lose of capital, naturally (if this is the case) authorities would avoid to mention it if possible to not give a worse image of Chinese banks.

Whatever the case, people protesting in countries like China will always end up in brutal repression, for demading one's very own money...

[Darker45]

At this time, none of the news coming out of China is surprising.

But there's a little element of surprise here in that the people are actually protesting. And they're a lot. While this is very seldom seen in the country, I hope this means that the Chinese people are now beginning to assert their right and freedom and are willing to voice it out on the streets if need be.

Of course, the government would always repress, oftentimes with violence, such show of resistance from its people but at the very least it goes to show that the people in this totalitarian country actually have the courage to confront an unfair system.

[edgycorner]

They kept it in custodial wallets. And custodial wallets are pretty common with bitcoin too(Coinbase,crypto.com or pick any cex).

This is equivalent to MtGox or other big bitcoin exchange/wallet scams.

Yes, bitcoin innately solves the problem. But cash or some other commodity based currency solves it too(when we are talking about this particular problem)

[Strongkored]

I don't know what the reason is that Chinese banks make an action that is detrimental to its own citizens and reduces public confidence in financial deposits is a very fatal act. This is a risk in one control and where you will only depend to behave with both the government and the bank.
It's hard to digest when this kind of government silences ownership. On the one hand we have known to restrict citizens from investing in assets they have no control over, but the world will see this as a warning. That we too could end up with the same suspension of accounts. While there is still time, switching finances to Bitcoin is the only way so that we can secure finances with complete control.

The customer's money was never only kept in the safe, One of the ways they doubled it was by investing and lending to investors and when their investment failed and the investor failed repay the loan then they lose money and so nothing can be withdrawn.
Happened in my country some time ago even bank owners used customer's money to finance their personal business and the business went bankrupt because of the economic crisis so many customers lost their money
A dictatorial China will always treat its citizens who protest in a bad way, unfortunately even though we can store bitcoins to secure assets we still need banks for other transactions

[Reid]

That's just sad. 
Why would they even put tanks in front of the protesters. They are doing it because it's their money and they should have all the right to be angry about their missing savings.
Their government is just adding more fuel to the protestors madness and this will not end well if they answer with violence.
I am glad I am not using banks anymore. Truly, truly, glad. How I wish, this will be resolved in a peaceful way.

[lovesmayfamilis]

That's just sad. 
Why would they even put tanks in front of the protesters. They are doing it because it's their money and they should have all the right to be angry about their missing savings.
Their government is just adding more fuel to the protestors madness and this will not end well if they answer with violence.
I am glad I am not using banks anymore. Truly, truly, glad. How I wish, this will be resolved in a peaceful way.

Just look at how tough the laws are in China and how harsh the punishment for non-compliance with these laws is. From here, the appearance of tanks becomes a completely unsurprising decision.

Any transactions in cryptocurrency are recognized as criminally punishable. As for today's events, Chinese interest holders who cannot get their money are some kind of symbol that trust in banks will fall, but they are also in a position where the use of bitcoin is also prohibited.

As the most pessimistic people who do not trust anyone say, the only way out is to keep money "under the pillow."

[TheNineClub]

This is where bitcoin empowers you and your funds are your own.BTCBTC

It does in theory, but in practice, it's still far from it, primarily because you can't really use it all that much. For instance, what if some of those people that are protesting want to pay for their electricity or food, how would they go about it? Well, as a small number of food suppliers and electricity suppliers offer payments in crypto, they would need to convert their crypto into FIAT, and then we go back to square one, and that is FIAT dependency. So let us not look at everything with rose-tainted glasses as there is much to be done still with BTC becoming the desirable currency.

[palle11]

The China system doesn't really allow for total freedom in the financial sector. They want to restrict and regulate everything going on to have the people under control and this is why they don't support bitcoin because it allows for open system and freedom. China is part of those countries not supporting bitcoin and this is making the system more difficult in operating there as the bitcoin transaction is not encouraged.

[Baofeng]

As per the article:

The locals hit by the banking crisis, one of the worst in recent years in China, claim 40 billion yuan (US $6 billion) in deposits have disappeared and have been protesting demanding access to their savings.

It's weird to hear that China bas a banking crisis since they are very strict about capital flight in their country. There's something wrong their for sure as we really don't hear that much news coming from them as obviously they are very secretive of every news that comes out from them. Just remind us of Tiananmen  square incident in the last 80's.

For sure, this and other events show how bitcoin can be a safe haven from this centralized banking system. But the problem with Chinese people right now is the their government has turn into anti-bitcoin, banning everything including bitcoin mining. So right now, they are in a dilemma.

[virasisog]

The China system doesn't really allow for total freedom in the financial sector. They want to restrict and regulate everything going on to have the people under control and this is why they don't support bitcoin because it allows for an open system and freedom. China is part of those countries not supporting bitcoin and this is making the system more difficult in operating there as the bitcoin transaction is not encouraged.

They won't allow currencies and transactions that they couldn't control. They always want to regulate everything but the sad part is, that their people are the ones who suffer. I wonder why their banks are still unable to handle everything well. We can't blame people who are protesting because it's their funds that are at risk. If they didn't ban Bitcoin, people would have the choice of where to keep their funds and they would have the financial freedom that they have been aiming for for a long time.