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

[kryptqnick]

I assumed that a strong authoritarian state like China would actually have a strict financial control system to ensure that there are no bank scams. After all, isn't ensuring customer safety is among the reasons how anti-crypto policies are often explained?
Another fairly recent thing with outragerous bank behavior was in Russia, where a very popular bank Tinkoff set a flat fee of $200 for international incoming transactions, and the fee is taken by the bank regardless of the sum of the transactions (if someone sends less than $200, the bank takes everything).
Bitcoin truly is freedom.

[Gyfts]

I assumed that a strong authoritarian state like China would actually have a strict financial control system to ensure that there are no bank scams. After all, isn't ensuring customer safety is among the reasons how anti-crypto policies are often explained?
Another fairly recent thing with outragerous bank behavior was in Russia, where a very popular bank Tinkoff set a flat fee of $200 for international incoming transactions, and the fee is taken by the bank regardless of the sum of the transactions (if someone sends less than $200, the bank takes everything).
Bitcoin truly is freedom.

Authoritarian government or not, banks shutting out their consumers is normal for them.

Having an authoritarian state just means the means at which government enforces its laws are done so with particular cruelty. It wouldn't stop any institutions independent of the communist government from acting in dishonest fashion. Though, if I were in their positions, I would hesitate to act in a way that isn't in adherence with the people's will because the Chinese government can be harsh with their punishments. Legal due process isn't something they really have.

[barbara44]

Didn't know that scams can also happen with banks. All the time I thought banks was the safest platform to store our funds but is it true that henan bank also uses the money to invest in bitcoin? And this is said to be the reason on the recent price surge.

Bitcoin can provide a financial freedom but they want to make sure that they are in control of their funds or they have their own private keys with them because exchanges, lending sites and other similar platforms are also experiencing the same issue where they also hold the funds of their customers.

I am starting to wonder if this was only normal and once the lock in period was done, people are free to withdraw their money again.

[aysg76]

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.

But they won't allow these wise Chinese mens to live freely and CCP ruling the nation for so long will not allow anyone to be out of their control and the authorities have bind all the distribution, productivity and all other channels in central chain of authority.

This is why bitcoin is their enemy because it will take financial control from them giving it to the ordinary citizens and when they loose financial stability everything changes and they don't want this to happen.

Didn't know that scams can also happen with banks. All the time I thought banks was the safest platform to store our funds but is it true that henan bank also uses the money to invest in bitcoin? And this is said to be the reason on the recent price surge.

It's not new and we have heard some cases before also and banks are no more safe place to secure your funds because they are actually their funds and can restrict you anytime from withdrawing the funds.But don't know whether they have invested in bitcoin or not but investing at the sake of people's saving scamming them is nothing good at all.

Bitcoin can provide a financial freedom but they want to make sure that they are in control of their funds or they have their own private keys with them because exchanges, lending sites and other similar platforms are also experiencing the same issue where they also hold the funds of their customers.

Leaving your funds on exchanges is like losing them at once because they are in possession of your keys and can utilise your funds or even restricts you like these banking institutions as they are also Centralised exchange so what else do you expect from them?

As per the article:
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.

The amount at the current is around is $40 billion yuan and thousands of people are waiting for the funds to be released but think they will get only a portion of their savings as bank has turned them dowm in this biggest scam.

China media will only show what they are said to by the government because they have full control over them as well tanks are reminder of the ruth massacre in past so people fear it.

[PrivacyG]

For many years, people believed banks were the safest and most secure place to store their wealth. I wonder if that is changing.

Based purely off my personal experience in life, I would say no.  It is not changing.  I see cashless payments occurring more often than I ever have, I am usually among the very few who still like paying with cash.  If I had to count how many of my friends store their savings in the bank, it would probably be around 7-8 out of 10 if not more.  They still seem to trust banks, they still seem to store their money there.  Thankfully, I am paranoid enough to not put my money in a stranger's wallet.

I think the statistics are worse when it comes to people that are now 18-25 years old.  Cashless is quicker, easier, more convenient.  They seem to prefer it much, much more than older people do, and to me this is worrying.  And I wish I am wrong, but I doubt that I am.  Especially since the pandemic, I think usage of banks and credit card in general has skyrocketed.

-
Regards,
PrivacyG

[coupable]

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.

Apparently, the use of tanks during demonstrations has become a Chinese custom that the world is no longer surprised by. In 1984, as I remember, tanks were used to crush the protesting students who were peacefully calling for freedom and democracy in a country where it has become impossible to live in a humane way. As for what the bank has done, I am not surprised that it has done more than that as long as it enjoys political cover from a government that does not even have sufficient measures to take, at least to absorb the anger of the citizens. Fortunately, social media exposes these practices and increases pressure on the Chinese government to find a solution as soon as possible. This situation will affect the reputation of the Chinese banking system as a whole, and not limited to one banking institution.

[aysg76]

Based purely off my personal experience in life, I would say no.  It is not changing.  I see cashless payments occurring more often than I ever have, I am usually among the very few who still like paying with cash.  If I had to count how many of my friends store their savings in the bank, it would probably be around 7-8 out of 10 if not more.  They still seem to trust banks, they still seem to store their money there.  Thankfully, I am paranoid enough to not put my money in a stranger's wallet.

I think the statistics are worse when it comes to people that are now 18-25 years old.  Cashless is quicker, easier, more convenient.  They seem to prefer it much, much more than older people do, and to me this is worrying.  And I wish I am wrong, but I doubt that I am.  Especially since the pandemic, I think usage of banks and credit card in general has skyrocketed.

-
Regards,
PrivacyG

The digital payments have substantially increased after the pandemic and we see most of the people using cashless mode to pay at every Store.The merchants have also implanted card swapping machines and qr codes that directly accepts payment from your linked bank account.

See this graph and you can check it for different nations also :



But the problem still remains the same that your money is in your bank accounts and they can put restrictions on you anytime so in this case what's the escape? Cash also needs to be withdrawn from banks or ATM's and it's the primary source for money flow in country and the problem lies there only which can't be solved.

Banks are blocking your transactions and funds and the case is reflecting how we need to adopt bitcoin for safety of our funds and having control of your funds with you only.The problem is with cash only but still we are in the world where fiat is accepted and bitcoin not so for our day to day needs and emergency saving we need to go through these banks but remember it can happen with us also so keep secondary option with you.

[skarais]

Banks are blocking your transactions and funds and the case is reflecting how we need to adopt bitcoin for safety of our funds and having control of your funds with you only.

Bitcoin is the best choice if we want to have our own bank. Bitcoin does not require a central authority like a bank system does, so when a bank is in trouble and continues to lose the trust of its customers, it is clear that there must be another viable alternative to replace it. I agree bitcoin is one of them, but not justified for those who don't like high volatility.

I also will not generalize that all banks will freeze their customers' funds if there are no problems faced by banks. This will only happen to certain banks for a large number of freezes, we can say it won't happen to other banks en masse but there is always the potential for it to happen to banks that we believe are safe. Bitcoin will also not forever be safe as a store of value, I just agree that bitcoin is an alternative solution because no one knows about its future.

[ChiBitCTy]

This is exactly the reason that China implemented the digital yuan, as a replacement to bitcoin and a way to say they’re on the “modern edge” of technology but technically just found a way for themselves to have an even easier way to track their citizens.

[Gayong88]

and it has happened. The possibility of financial freedom is an important issue facing many Chinese people these days. Many people cannot avoid high-interest loans that are always the prey of debt collectors. It's easy to get caught up in schemes like the ones you wrote above, but new financial products are emerging with clean payment terms and easy money transfers, like possibly bitcoin and other cryptocurrencies.