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

[Zoomic]

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.

This practice is supposed to be a global standard for commercial banking if the governments still want citizens to confidently trust their money in banks.

Before a bank goes bankrupt, the central bank authority of country should be aware since they have the database every bank so they should know to protect the citizens funds and return them when there's a shutdown. Telling the bank customers that there's bankrupt people and there's no way to get their money I think is calculated move to steal from them.

These are the problems Satoshi saw and created a solution for it(Bitcoin), but unfortunately, there's are still people across the globe who are yet to understand how it works while there are others that were opportuned to learn about Bitcoin but are still analog to evolve to a digital money that allows them to have total control of their assets.

News like this one drives more people to Bitcoin and one day, I believe Bitcoin will become globally accepted as a mean of of exchange.

[Hatchy]

~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.

It won't make us completely safe or unaware of what is happening around us, but it removes the need to constantly worry while everyone else is panicking about what might happen to their finances. The traditional financial system is very broad, so even if one bank goes bankrupt, it doesn't necessarily mean the entire system will collapse, unless the country's economy has completely fallen apart. I'm still hoping that one day, Bitcoin payments will be widely accepted around the world, to the point where I won't have to convert my BTC into local fiat currency if I don't want to.

The world is evolving very quickly. I still remember when digital transfers were not very popular in my country. That changed when we experienced a situation where physical cash became almost impossible to find because the government changed the currency overnight without giving people enough time to adjust. Today, almost everyone, including small business owners and local sellers, understands how to use digital payment systems or has added them to their businesses.

This is exactly how I see Bitcoin becoming in the future. It might take time, but I believe wider adoption will eventually make it a normal part of everyday financial transactions.

[stompix]

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.

And?
You swap your BTC for shitcoin 1 and shitcoin 2 and shitcoin 3 and USD....
And how are you going to use that money if the banks are locked and you can't withdraw from an exchange?
How are the stores going to accept your bitcoins if their bank accounts are locked?

Some of you really live in a fantasy world completely decoupled from reality!

[Myleschetty]

This is one of the reasons why the decentralized form of money is the key to people's liberation, while "not your keys, not your coins" is the non-negotiable rule.
The reason this statement is continually emphasized is to ensure individuals understand that money is just an arbitrary digit in the traditional banking system, where banks could freeze accounts or fail.
Currently in Paraguay, millions are learning this the hard way, and I hope such events will act as a wake-up call for those still relying on traditional banking systems for the majority of their savings.

[Majestic-milf]

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.

This is very painful to see. Imagine working for most of your adult life and saving to make use of the funds only to find out you can't access it anymore. It's painful and I'm wondering what the government plan to do about this because this is just like working and paying thr government, it's even worse than paying taxes and bills. This very painful.

[Ambatman]

Well despite strict compliance from government and central banks
People using Banks funds are at the end on the hands of the executives.
Well this is one advantage of bitcoin doesn't mean it doesn't have it's dependence currently on traditional Banks.

How are the stores going to accept your bitcoins if their bank accounts are locked?

Hahahahaha Easy
They will unlock it.

[Justbillywitt]

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.

The bank has to be insured by NDIC first, before the bank customers are considered eligible for reimbursement. You also have to understand that there is a coverage limits that can be reimbursed back to each customer. This mean that you cannot get all your money in the bank at once, if your money there is above that coverage limit, set out by NDIC. For commercial banks, the maximum limit coverage is around five million Naira, while the maximum in micro finance banks is two million Naira at present.

It’s not as if the CBN will return all the money you have in the bank in one deposit. It’s not as if the CBN will return you to your former status, as Binance did with their customers with their recent hack. Every other money you have outside the limits, will be returned gradually as the bank assets are being sold, and there is no time duration for that. And you know what that means in Nigeria.

[promise444c5]

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.

Yeah they would still have their bitcoin regardless.. but this only works if they can find a means to exchange their Bitcoin to get basic stuffs they would be needing. If the fiat system should collapse anytime without any immediate backup, it will be somewhat hard to spend those Bitcoin for a while before the world adapt into a new system.

The good thing is that, you still have your Bitcoin intact.. there could be risk of “holding” in this stage depending on how the possible transition plays out.

That’s why every Bitcoiner should learn to keep their mouths shut about owning some bitcoins

[Findingnemo]

I saw that on social media too and that is the pathetic situation of the centralization but you know what, people never learn, they will simply start using another bank from now on and they think that instead of keeping money in different banks instead of one is the ultimate solution.

[buwaytress]

Also need a reminder that if you can't access your coins at any time, if you need someone else to approve your transaction, yeah, that coin isn't really yours.

And a reminder to myself, if I'm not the only one who can access my coins, it's also not really mine and mine only. #Ledgersux

[Obim34]

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

Good advice, but you need to do P2P in an exchange for cash.

If Ueno is one bank among many, there should be other banks operating?

Banks are important, no matter the exposure to Bitcoin, we need banks for everyday use. I don't have a problem with having both money in banks and also Bitcoin in your wallets, not a big deal. Just for today, I've made more than five transactions, fast and smooth, what's so special about using Bitcoin instead?

[abel1337]

This is another reminder to me not to let go of my bitcoins and other crypto and to keep them under my own custody. If I'm that bank customer and all of my money was in that bank, I would definitely panic as I lose all my spending power for the time being. There is deposit guarantees for sure, but it would take weeks or months before getting it as the insurance will process millions of people rushing to get their money back.

With the number of affected individuals on Paraguay, I'm sure this is a major national issue. This could bring massive doubts to the government allowing banks to run like that.

I'm sure most of us have money on banks, and to be honest, I have a money in my bank too but it isn't that much, we want the convenience we can get from them at the same time we don't want to be on a situation like this, this is why most of us has bitcoin under our own control which we can use any time that we want without anyone approval.

[lombok]

I saw that on social media too and that is the pathetic situation of the centralization but you know what, people never learn, they will simply start using another bank from now on and they think that instead of keeping money in different banks instead of one is the ultimate solution.

It is pity that people are changing banks, because nothing much has changed. It is true that having your money in different banks minimizes the chances of losing it should something go wrong with one of the parties involved. However, the old way of thinking remains; that is, large amounts of money are put in the hands of other people whom you do not have any control over. In order to have peace of mind, keep most of your money and have just a little in the bank. It is simple and it needs no talent at all.

[sunsilk]

Paraguay is in chaos right now.

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

I thought that this is the biggest bank but after searching, they really do. The biggest bank in terms of the number of customers and active clients.

Although there's the other one named Banco Itau Paraguay as the biggest bank by asset.

This isn't the first time I've seen this news, in the past few years there's also this protest happened in China when a bank also didn't allowed their customers to withdraw and also a bank somewhere in the Middle East.

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

Can't blame these people who are not fond of taking risk by putting their money in Bitcoin. While we also promote self custody of our funds but, these people might be the old ones that doesn't believe in the new system that bitcoin has got.

[Jegileman]

Even to the fact that one may still exchange their money for fiat before they can spend it, that’s not enough reason not to embrace decentralization. It has helped to build trust and sense of ownership, confidence in whatever one wants to do with their own money.

Banks have once gone bankrupts in almost every country in today’s world, but they keep lingering the request of making Bitcoin a legal tender to be an alternative to the fiat currency. The reason still remains the same, they can’t be able to trace and control your money if that’s allowed, I don’t think that we will see an acceptance of this in the coming years.

[Stalker22]

Yeah... we have seen this movie before.  Every time a central bank steps in and freezes accounts people act like its the first time its ever happened.  Remember back in 2013 with Cyprus?  Or Argentina?  People woke up one morning and couldnt access their own money.  Their savings were locked.  Their own money.  Same old story, just different players.

If you dont hold the keys, it is not really "your" money… its just IOU from corporation that can fold over night! One decision, one regulation, one moment of panic and your money gone.

[kawetsriyanto]

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.

Once banks declared their bankruptcy, are they free from the responsibility of returning the people's money? As far as I know, bank still needs to return the customer money although they declared bankruptcy. If this role also applies in Paraguay, the people don't need to go out into the streets. Their money will be returned although it won't be in a short time.

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.

Indeed. Diversification is needed. We don't only put all out wealth in banks, we also need to divesify it into some assets. Bitcoin and Gold are 2 recommended options. So, we still have some wealth although the money in banks is gone.

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

Yep. There are too many cases that reminds us to have safe heaven assets besides storing money in banks as our savings. However, not all people want to secure their wealth. Some of them don't really care about it, they rely on banks too much.

[Crypto_Timothy]

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

One of the reasons to just appreciate Bitcoin, because i cant even begin to imagine the panic that the Paraguayan people are going through following this chaos, like imagine a father who will be rendered helpless as he cannot provide for his family because he cannot access his own hard-earned money and this is something i spoke about just recently, as time goes on more person either out of curiosity or circumstances like this one now will make people adjust and adopt Bitcoin and im certain a good amount of person will actually adopt. i remember when the local currency in my country crashed and people were begging the banks for money to survive the week and bank would tell them you can only redraw certain amount. if you have gone through this experience once, you wouldn't want to go through it again.

[mirakal]

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

For some people, its easy to say embrace bitcoin and be their own bank, but the real problem hits when they can't take full custody of their own funds. Not because they're not knowledgeable about it, but because they don't want to, they just want to keep relying on other third party and still expect high security of their funds.

However, this is already a good opportunity for bitcoin promotion, for people to realize that centralized banks are not actually helping them, they only push them to easily lose their money. Bitcoin is the key, its just that not all people are open to bitcoin.

[Renampun]

Something like this happened in my country.. One of the major banks collapsed and declared bankruptcy due to mismanagement, and several of their major customers withdrew their money.. This forced the bank to go bankrupt, leaving thousands of people without access to their money.. Even after years of this case, and many people were arrested, customers still didn't receive adequate compensation for their losses.. Many even suffered severe stress from losing all their money.

This is a wake-up call that keeping money in a bank isn't completely safe.. No matter how much you trust a bank, it can run into problems at any time. Whereas with Bitcoin, you expect it to stay in your wallet as long as you keep it secure, and no one can freeze your funds, restrict your access, or run away with your money.. That's one of the key differences between Bitcoin and traditional banking.