Bitcoin News Today – Headlines for November 1

  • The banking system of China is facing heavy liquidity issues
  • Authorities come to the rescue of banks for the fourth time this year
  • Bitcoin could benefit from the flawed financial system of China

Bitcoin News Today – Bitcoin (BTC) was created over ten years ago to provide freedom from the banking system, which is obviously in trouble. Literally, banks hold their customers to ransom when services are pulled. This is currently what is going on in China as customers are running to banks to pull their savings.

China’s Banking System Is Beleaguered by Liquidity Issues

Banks are now the pest of people’s lives. Only a few persons have positive remarks about them these days, as their services have dropped and charges are on the rise. In Henan, China, customers have flown to a rural bank for the third day in a row to withdraw their money. WSJ reported that the main branch Henan Yichuan Rural Commercial Bank was flooded while banking staff were trying to control the crowds with publicity.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$0.00-0.15%

As part of the publicity stunt, the bank employees were flaunting wads of cash in front of TV cameras to show just how much money the bank had. Bank managers also came out to offer supermarket gift cards and higher-yielding products just to convince customers not to withdraw their money.

Yichuan Bank is backed by the state and it is currently in trouble. It is the fourth lender that authorities have had to bail out this year. In 2018, the bank had more than 1 billion yuan in bad loans. Rumors were all over the internet that the bank was on the verge of bankruptcy, and many ran to the bank branches to get their money.

The banking system of China has been struggling with liquidity issues over the past few months. Smaller regional banks that grow aggressively are top of that pile and the issue is likely to worsen. At the beginning of this year, it was Baoshang Bank, then it was Bank of Jinzhou, and two months ago, China’s Heng Feng Bank has failed.

According to a report, the affected banks account for 4 percent of total assets in the banking system of China. Though, chances are the figure is higher than that. The financial system of China seems to be in a giant house of cards that is why hedge assets like Bitcoin could be the solution.

Bitcoin Could Be the Solution to the Troubled Financial System of China

Sad news for banks seems to be a good one for Bitcoin (BTC), which was created to provide a way out from the flawed banking system. Rhythm Trader – an industry observer – said that “Bitcoin is not a get rich quick scheme, it is a get free quick scheme.” Bitcoin could serve as a safe haven in times like this.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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