A Brutal reminder that your money isn't yours if you can't access it anytime

[Ashawowo(OS)]

Paraguay is in chaos right now.

Paraguay's central bank has taken control of Ueno Bank following serious insolvency issues.

Approximately 2.94 million customers, around 63% of Paraguay's adult population, have lost access to their money.
https://x.com/seth_fin/status/2118109960689091021

These people have gone out to the streets demanding their money but it's beyond their reach since the banks they trusted with their money have declared bankruptcy. Banks and centralization has failed us. Self-custody remains the best.

If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.

Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

[Aanuoluwatofunmi]

Not your keys, not your coins.

It is time we all realize the disadvantage of using a centralized platform to hold our assets, it does not make any difference that you are having bitcoin and yet holding it on a centralized exchange, you can still fall in the place of those that are affected in Paraguay in this manner or any other related one.

Wish you to embrace decentralization, adopt Bitcoin, and see it as the reason why we can have our financial freedom away from the centralized authorities that have always been in charge of our money; anything that belongs to us must be in our possession, and we must be able to have control over it. This is why Bitcoin is the answer to many questions about financial challenges with centralized authorities.

[OcTradism]

Paraguay is in chaos right now.

The whole world is in chaos and turmoils during this AI era that has changed the world entirely and in a negative way for security on many platforms.
The rise of machines.

If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.

Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

Reminders are available since years ago and most people ignore many security and privacy recommendations and reminders.
Privacy matters, security is important, and it's not your key, it's not your bitcoin.

Reminder: do not keep your money in online accounts.
Events made you scare about custodial wallets, centralized exchanges.
Why KYC is extremely dangerous – and useless.
Security and Privacy Encylopedia.

[Karl_3000]

In my country if any bank go insolvent, the central bank will compensate the bank users by paying them their money if the bank is legally registered with the central bank but the issue is that there will be a delay before paying the customers. That said does not mean I have my money in bank, most of my money are in bitcoin because I want complete control of my crypto.

Bitcoin can achieve what you are saying but some people are having the bitcoin on centralized exchanges which is not different from the banks which are also centralized. The best are self-custody wallets.

[Taricoins]

In my country if any bank go insolvent, the central bank will compensate the bank users by paying them their money if the bank is legally registered with the central bank but the issue is that there will be a delay before paying the customers. That said does not mean I have my money in bank, most of my money are in bitcoin because I want complete control of my crypto.

Bitcoin can achieve what you are saying but some people are having the bitcoin on centralized exchanges which is not different from the banks which are also centralized. The best are self-custody wallets.

It's becoming a contentious if you keep your money in the bank, rare cases like being money being locked when a bank is insolvent and if we want to keep our money in centralized exchanges, regular hacks puts ones mind in turmoil, so where do we turn to now, for now decentralized exchanges are the best, but how long before the hackers finds an ingenious idea to hack them.

[stompix]

In my country if any bank go insolvent, the central bank will compensate the bank users by paying them their money if the bank is legally registered with the central bank but the issue is that there will be a delay before paying the customers.

There are limits to the compensation in every country, US, EU , whatever, same in this case, there is no country on this planet that has unlimited deposit guarantees, in your case is $1,300 so about 30 times less than what Paraguayans will receive

Each depositor is guaranteed up to 228 million Paraguayan guaraníes, or about $38,000, from a central bank fund, the regulator said. Under Paraguay’s banking law, that money must be paid within 15 days, a deadline that can be extended once by another 15.
About 97% of Ueno’s depositors have balances fully covered by the guarantee, according to preliminary estimates cited by central bank board member Marco Aurelio González. For amounts above that limit, the central bank stopped short of promising full repayment, saying only that it would seek “the greatest possible protection.

The whole world is in chaos and turmoils during this AI era that has changed the world entirely and in a negative way for security on many platforms.

Weird, everything is peaceful here, maybe because I'm not all covered in tinfoil?

[Joy_learns_crypto]

In my country if any bank go insolvent, the central bank will compensate the bank users by paying them their money if the bank is legally registered with the central bank but the issue is that there will be a delay before paying the customers. That said does not mean I have my money in bank, most of my money are in bitcoin because I want complete control of my crypto.

Bitcoin can achieve what you are saying but some people are having the bitcoin on centralized exchanges which is not different from the banks which are also centralized. The best are self-custody wallets.

Have you seen when that happens, your country central bank has said that, they have a law that before a bank runs they pay a certain amount of money and this money is believed to be used to settle customers in case of any thing.
Have you seen a situation where that actually happens? Most banks that have paid that haven't gotten to such situations but let's be honest with ourselves how hectic do you think the process would be if a bank were to have issues and the customers need their funds, there are chances that not everyone will get their money in full.

[Free Market Capitalist]

This is why governments and banks want to eliminate cash. They’re doing it like the frog that’s boiled alive little by little—not by banning it, but by encouraging the use of digital payment methods and placing limits and obstacles on the use of cash.

When people used cash—or in countries where it’s still used, like Paraguay—bank runs can occur, meaning people rush to the bank to get bills that the bank doesn’t actually have because they’re busy creating digital money out of thin air everywhere with the debt system. The more money they create, the more interest—which is money that doesn't actually exist—has to be paid, and that can only end in bankruptcy or in an endless cycle where more and more money is created, leading to more and more inflation (money is worth less and less).

Even if you eliminate paper currency, banks could still run into problems—if depositors order massive transfers of their money to other banks, for example—but you don’t see images of people standing in line, and it’s something the authorities can handle behind the scenes since it’s all just numbers with no real backing.

[Bd officer]

Our country's banking sector is going through a very bad situation. In our country, several banks are also at risk of bankruptcy, but if a bank goes bankrupt, our country's central bank can return a small amount of money to its customers.

A relative of mine kept money in the bank in 2016 for double profit but could not withdraw the money even after the expiry date. Imagine if he had bought land or Bitcoin with that money in 2016, would he have faced this problem?

Personally, I do not have a bank account yet, I do not trust banks. I am interested in BTC and land. I do not advise anyone to keep money in the bank, if someone is not interested in Bitcoin, then land or gold can be the best option.

[Pablo-wood]

My concern is what causes insolvency that makes a bank unable to pay its debts when banks carry out transactions every working day, except on holidays. Does this mean that a bank can still go bankrupt despite handling daily deposits and withdrawals? What exactly leads to such a situation?

The Central Bank of Paraguay taking over the bank will it mean compensation to account holders or the stand will they lose their money?. I will wait for the CBP to make an official statement about what happens to their adult citizens who had money in Ueno Bank.

[Spaceman1000$]

Paraguay is in chaos right now.

The whole world is in chaos and turmoils during this AI era that has changed the world entirely and in a negative way for security on many platforms.
The rise of machines.

If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.

Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

Reminders are available since years ago and most people ignore many security and privacy recommendations and reminders.
Privacy matters, security is important, and it's not your key, it's not your bitcoin.

Reminder: do not keep your money in online accounts.
Events made you scare about custodial wallets, centralized exchanges.
Why KYC is extremely dangerous – and useless.
Security and Privacy Encylopedia.

With a government that is full of inconsistency, lies and not coming up with real policies that will effectively help the masses, trust me institutions will gradually be failing, how can a bank that stores people's financial assets, come up in the open to say they are bankrupt, is it that they used the money that was banked by the masses to invest into fraudulent scheme, because this banks makes a lot of money from charges and other maintenance fee they collect from people banking with them, so at what point will the bank come up to say they are bankrupt if not for political interference and manipulation. My kindly advise would be, even though you have some cash in the bank, a chunk of your financial assets should be in a decentralized bitcoin wallet, else all of these institutional failures will have a great effect on you.

[KiaKia]

Reasons why many idiots won't take this advice seriously...

1. It's Paraguay not my country.
2. It's just one bank, my own bank is different.
3. Since the beginning of time, only few banks have gone bankruptcy.
4. It's very rare that this will happen.

One bank down, many more still working, like a friend once told me when a bank folded up in my city, he said we hardly hear about banks going out of business but it's a very common thing with the Blockchain.

How did I won him? It's not Bitcoin.

[m2017]

Paraguay is in chaos right now.

Paraguay's central bank has taken control of Ueno Bank following serious insolvency issues.

Approximately 2.94 million customers, around 63% of Paraguay's adult population, have lost access to their money.
https://x.com/seth_fin/status/2118109960689091021

This is the price one pays for the convenience of "owning" money in the form of bank cards and mobile banking (as well as receiving tiny amounts of interest on deposits).

These people have gone out to the streets demanding their money but it's beyond their reach since the banks they trusted with their money have declared bankruptcy.

This is what a traditional "hack" of a banking system looks like.

Self-custody remains the best.

But this will not prevent problems in the financial sector, such as inflation or an economic crisis \ default.

If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.

Until these wallets get hacked, that is. And as long as there’s electricity and the internet.

Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

But keep in mind that having control means you are solely responsible for the secure storage of your assets. Bitcoin has no support service that can help you recover funds that have been lost, stolen, or sent to the wrong address.

[Lucius]

~snip~
If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.
Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

You have 100 BTC and all your money in the bank is blocked, is everything okay? Yes, if you can go to the store and buy what you need and pay with Bitcoin - or if you have a way to sell Bitcoin for fiat without that transaction involving your bank. Having Bitcoins unfortunately does not mean being completely safe from what is happening around us.

[noorman0]

Given that the law does not allow you to use Bitcoin freely (outside of a criminal context), this presents a difficult dilemma. Ultimately, you will still have to go through the exchange process via those financial institutions. If I were to go around shouting, "Bitcoin will bring you freedom," in a place like Paraguay, I would likely end up on the radar of law enforcement.

To be honest, I still use banks to receive my salary and for my daily transactions.

[salad daging]

In my country if any bank go insolvent, the central bank will compensate the bank users by paying them their money if the bank is legally registered with the central bank but the issue is that there will be a delay before paying the customers. That said does not mean I have my money in bank, most of my money are in bitcoin because I want complete control of my crypto.

Bitcoin can achieve what you are saying but some people are having the bitcoin on centralized exchanges which is not different from the banks which are also centralized. The best are self-custody wallets.

The same thing in my country, when a bank goes bankrupt then there is a guarantee of max compensation of 2 billion IDR or equivalent to $110k for the current USD exchange rate, but I did not read the exact rules of how the claim process is clearly taking a long time.

A few years ago there was a bank collapse, fortunately it was not a big bank.
Saving a lot of money in the bank is no different like crypto exchanges, fortunately some exchanges do not go bankrupt.

For me now it is clear, it is not going to save a lot of money on those platforms that do not have at all, especially when holding bitcoin then in a non-custodial wallet is at least not bad.

[knuckey]

Bitcoin offers freedom. I'm sure anyone familiar with Bitcoin wouldn't put all their money in a bank. Full access to our money keeps us out of trouble. I personally only use banking services for transactions, and I'm only a customer of one bank, and even then, only for cash withdrawals. We control our assets; we shouldn't give access to third parties unless absolutely necessary.

[Junii]

Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

I think this is exactly the kind of situation Satoshi wanted to solve it because of bitcoin as the whole game of bitcoin is to control of humans on there money without the need of a banks or any third party . I see majority of people still did not use bitcoin the way it needed they buy bitcoin doing DCA in it but still there fund is in exchange which is not a good idea because you are still dependent on a third party. Any ways be your own bank that is what Bitcoin is all about.

[hd49728]

The same thing in my country, when a bank goes bankrupt then there is a guarantee of max compensation of 2 billion IDR or equivalent to $110k for the current USD exchange rate, but I did not read the exact rules of how the claim process is clearly taking a long time.

A few years ago there was a bank collapse, fortunately it was not a big bank.
Saving a lot of money in the bank is no different like crypto exchanges, fortunately some exchanges do not go bankrupt.

When a business bankrupts, there will be orders of compensation to customers and if you are a very normal and small customer (in fund size), you are at a very bottom of compensation receivers in that case. It's realistic to assume that you will lose most of your money, if not all, in such situations. Thinking and assuming like this will make you more fearful about that, and become more careful with your risk and capital management.

Never store all money in one bank, one centralized cryptocurrency exchange, it's very basic principle in managing risk.

For me now it is clear, it is not going to save a lot of money on those platforms that do not have at all, especially when holding bitcoin then in a non-custodial wallet is at least not bad.

It's good to store fund in non custodial wallet but make sure you store your fund in multiple wallets, not only one wallet, and don't store all wallets in one device and at one place. It's the same rule for storing your wallet backups, spreading them at different places so that you won't lose all wallet backups with one incident.

[DubemIfedigbo001]

~snip~
If these people have kept some money in Bitcoin and hold in open-source non-custodial wallets, they wouldn't be bothered about the banks collapse, since thier coins would be available to them whenever they want.
Another day to remind everyone to be their own bank, embrace Bitcoin and take full custody of their funds.

You have 100 BTC and all your money in the bank is blocked, is everything okay? Yes, if you can go to the store and buy what you need and pay with Bitcoin - or if you have a way to sell Bitcoin for fiat without that transaction involving your bank. Having Bitcoins unfortunately does not mean being completely safe from what is happening around us.

Isn't it better that you're in this category than having everything trapped in the bank during this kind of moment?
This takeover left many people Bankrupt. This isn't even much of a problem since you can use DEX or even CEXs to liquidate as much quantity as you want while the remaining coins stays safely in your cold storage or HW.
What you described is a better problem, in fact a good one for that matter since liquidating bitcoin isn't that difficult and not all banks would be blocked at the same time, so you can always receive fiat in the available one.
When your funds is out of reach it becomes a real problem. Self-custody is non-negotiable.