Topic: Bank’s failure (Read 373 times)

Banks can and will freeze your accounts for no reason at all, they have done it in the past and they will do so in the future, back when the Great Depression was still ongoing the US president ordered a bank holiday that if I remember correctly lasted for a week, and during that time no one could get their money out of the banks.

Now you may think this happened a long time ago but all governments have emergency powers like that and they can exercise them if they want, and if the economic crisis in which we are in goes out of control I expect something similar to happen again.

Depends on the person you are freezing the assets. If you are doing this to Russian oligarchs who helped and fed Putin and made him this strong, either willingly and lovingly, or because they had to, doesn't matter and that allowed them to get richer, then freezing their assets makes sense. I mean these are the guys who paid Putin, get him rich and powerful, and in return used the resources to extract and sell to the world.

The problem is that, if they do this to regular citizens, people who do not have too much money, not oligarchs, and not even support Putin? Then it becomes a bit of a problem and I believe that we should not be really supporting that part of it.

Tell me about it. My nation has such a horrible inflation is that I am spending nearly 3x to 4x more prices compared to just a year or two ago. This is of course horrible for anyone who lives in my nation, but at the end of the day I am making my money in dollars, and earn dollars and that is good enough for me.

There is no situation that changed my life style, in fact I may have got a bit better to be fair since inflation was high, but the value of dollars increased even more so I am doing fine. However at the same time we are talking about my whole nation being in brink of bankruptcy and that is a sad thing of course.

The banking system is run by the government, every country has its own central banks that regulate the banks both public and private. So any decision is made by the government and in case of sanctions or whatsoever, we have to deal with it.

It's nice to have our money in crypto, but we also cannot deny that crypto does not provide security of our money, therefore, we just have to ensure that we have different options in case things like this would happen so we can still access our funds.

having a bank account and crypto-assets being kept separately is the best decision for me.

To say that we are heading towards another 2008 might be a bit much. I think if we were heading down that path then we likely already would have during the pandemic. I’m certainly not saying things aren’t ugly and we don’t have a hard time ahead of us, because we do. I think people overall still trust banks and it’s going to take time for that to turn around. Hopefully this was a big wake up call for people !

Like when a bank user is guilty for doing criminal acts or frauds, his bank account will then get frozen. That was acceptable but what about during the war between Ukraine and Russia, I heard that bank accounts of Russians were freeze too? Is that acceptable?

Maybe, if your against the Russia because they started the war but for some I think it isn't because bank users didn't commit anything that is illegal but it was their president (Putin) that started the war without their consent. If they can be able to use banks, I am pretty sure that they can also understand how crypto works. It's only just a matter of learning it. For now, they won't consider this but time will come they will.

This has happened before, people didn't care much that Venezuela couldn't get their gold out of England! Truckers in Canada felt it on their skin like it is when banks merge with the government! And now we have a much more complicated situation at the global level where banks, again with the government, decide who can and who cannot use their services! In my opinion, the situation is clear, no one is safe, the rules are on the side of the stronger and sometimes it seems that those rules are not fair at all!



The current conflict seems bigger every week and it will definitely change the global economy! I have been saying for years that at some point people will have to choose changes and that changes must be towards crypto! This will only be achieved when people decide to use crypto much more, thus expressing support for a better tomorrow! Banks are simply doing what they have been doing for centuries, and it is already clear to everyone that they are serving the people in power and the rich ones, who are imposing their control by controlling the flow of money and getting richer along the way! It is a rigged system in favor of the minority, unlike the crypt which has the potential to be fairer and in favor of the majority! It's how I see things!

I don’t think that banks would just freeze anyone’s account for no reason. Before banks can take such an action there must have been something that have led to it happening. I have seen so many occasions where the banks has taken such actions and freeze people’s account and it wasn't just for no reason, a situation must have occurred before it happened.

Until now there are still so many people who are relying on banks and using it as a means for them to make transactions. Not everyone is really into making use of cryptocurrency despite how good cryptocurrency is proven to be. It might be a case of not having pure understanding of how it works.

I won’t be relying on Fiat and banks because as time goes on there will be inflation and things will start getting costly. Fiat keeps losing its buying power over the years and those who used Fiat as savings are the ones that are losing. It is very important that we learn to start investing our money in different assets such as bitcoin and lands.

I have also invested my money in lands because lands are one thing that never lose their value and every year they keep on increasing. The amount that you paid to buy a land in the last 10 years is not what you are going to be paying for that same land this year. If you check you will see that the value of lands keep on increasing. and bitcoin is another asset that has also been worth investing for years now.

It is always a sad and disgusting thing when you see people being manipulated by a master manipulator. Unfortunately the Russia lies will continue until the sun goes nova. The truth will be out soon though and it will be the people of Russia itself who will have to deal with the devastation that was done to their country in one of the greatest violations of international law since the Second World War. Only time will tell if this was the act of a criminal gang or the act of a losing and discredited government.

You say all of this as if it is a negative thing, but the backlash that has been imposed against Putin was way beyond what he could ever have imagined and in part that was helped by the centralized nature of the banking system. It is only through Russia being part of these far spanning global networks that it has been possible to cause vast economic damage to Russia for their totally unjust invasion and attempt to crush a democratic people who were successful in ridding themselves of a puppet regime. Unfortunately that means many Russian people will have to suffer in the process, but maybe it will spur them to overthrow the tyrant they have for a leader.

You were just actually helping the Banks to make more profit if you leave your money on their Bank without ever touching it for more than a year. Be it small or big amount that you deposited on the Bank you are still helping a Bank that would someone lock your own hard-earned money.

Can you imagine that they were just holding your own money and then if there's a problem they can easily lock your account. I prefer Bitcoin wallet as my own bank rather than put your own money on a bank that would eventually stop you from using your own money.

Crypto is lowering that power of Banks hopefully. Maybe not right now, maybe not right away but we are working on it for sure. There are less and less people going to banks and more and more towards crypto.

I know plenty of friends who moved all of their money into full on crypto, and ways they use banks would not make them any money. Regular "have money in my bank account" is not something banks would want, that is just too much work. They want you to put it in interest, so they could loan that out to multiple different people (same money) and get a lot of profit. If you only use debit card and not take loans and so forth, then banks would collapse and DeFi was the first step towards that.

I am not so sure we can call it a failure since that has been the business model of banks from the beginning, banks use whatever money that you deposit with them as if it is theirs, and while putting your money in a bank is easy getting it out of the banks is way more complex, so when we see things from that perspective everything is working according to their plan.

We may not agree with the faculty banks have to freeze your account for no reason at all, but you agreed to that the moment you are using their system, and if you do not want to comply your only options at the moment are to use cash or to use bitcoin, which is what most of us are doing anyway to protect ourselves from the banks and their policies.

So it is really useless for minimum wager like us to save our money on the bank. Good think I have withdrawn all my assets 4 years ago and decided to invest it on others like land, crypto, and started a small business two years ago. Even though I worked my ass hard day by day, my savings isn't getting me anywhere and as inflations hops in it's buying power becomes weak. Unless we have millions that would rake profits from annual interest on our money, but the thing is we commoners don't have that and it sucks.

I think it's obvious that it was the goal of Satoshi Nakamoto, to fix the issues cause by banks and to provide total freedom for currency users. It's only crazy to think that some think btc is a bank or a bank replacement though I think both of them are not the same but each serves a function that cant be found by the other.

More people are joining crypto but most of those people also leave crypto because they can't get what they expect or their country bans it. That's why there will still be a demand for banks. Banks won't stay the same but banks know how to evolve too, they are adding new features and most banks now are transitioning to the online world.

Really true. Globalization now would become a very doubtful concept, before this incident world was thinking that the old age war type scenarios between big countries are now thing of the past. All the countries now know how to remain together in peace. But this recent Russia attacking Ukraine and West attacking back with sanctions thing has actually shown people that it is still not an easy task to trust other countries with your funds. Talking about traveling and trading, I think it still won't stop, the world today has reached such a level that no matter what every country is dependent on each other for various resources. So that obviously would still carry on. With integration of metaverse travel might become even less important.

You're pretty much forced to use the central banks because that is how most governments operate their financial systems. That's not necessarily the issue. In a crypto based economy, loans are still possible. You just wouldn't be able to create loans out of thin air or create a bubble like the U.S. housing market crisis. A crypto bank could loan as much as they wanted to granted they had the assets to back it up.

It is not the first time the banks have frozen assets of other people. This is what happens when you use something centralized. You don't have power over your own assets. It is someone else that will always have control of your assets. They seize or freeze it at their own will and you can't say anything. This is why decentralized currencies like bitcoins are considered superior when it comes to cases similar to this. But if you store your coins in a centralized exchange, you face the same problem once again. The centralized exchange can freeze your funds and account if they want or if they are ordered by the law. To have full control of your funds, always store your coins in a wallet where only you have access to your keys.

The role of the bank is always there and cannot be replaced when the government is still the sole controller of a country economy. Moreover, a state policy is to strengthen its finances, so like it or not they will stick with their fiat even though they are experiencing inflation. Cryptocurrency as an alternative that can convert fiat money anytime and anywhere. It is also always considered as an act of money laundering by the government which prioritizes fiat as the only transaction tool. Therefore, cryptocurrencies, especially Bitcoin, are made parallel to investment alternatives that are no different from gold.

The traditional banking system has had the luxury of decades and millennia to develop procedures to protect the public and the flow of money through the various economies. There exist many checks and balances that do not exist in decentralized financial systems. One of the mechanisms to protect the financial system and combat illegal money flows is through freezing of assets. This can only be done because of the centralized nature of the financial system. Banks will not willy-nilly freeze accounts or assets, only if it can be linked to illegal money flows, crime or if required by legislation. The traditional safety and protection of the public includes other advantages like the return of funds. These protection measures do not exist for crypto. I do think however that in future such mechanisms of protection may be developed for crypto but is still far off. For the short to medium term banks will continue to exist and will freeze accounts if required.

It's not easy because banks are a big part of a country and we can't really change or replace them entirely, they're going to cause a power black hole which is much worse than a vacuum, economies will collapse and the recovery might take decades because we are going to replace a mechanism that's vital to our economy so the best approach is integration and then slowly taking over the system implemented with added improvements.

That's have been the case way before the advent of crypto, and this could be one motivation for Satoshi to create his bitcoin as an alternative to the banking system. Take note that I said alternative and not a replacement because there are still some people who wanted crypto to replacement the banking system. I don't think it will happen in the future, banks will still be here and will stay here for the next centuries. Maybe there will be more people going full crypto, but it doesn't mean that banks will be obsolete.

Bank failure will affect the government and economy more than the actual people because if there is no money is in circulation government will suffer to generate revenue especially the countries with consumer based economies. But that is the only possible solution as of now, when everyone realize that the money in the bank is actually safe and can be used as we want the things will change.

We find a way to navigate to BTC for this I don't want to blame any organization because in this situation, our relationship creates problems in life. And the story to please everyone is never easy, especially at the present time when competition takes place among individuals, organizations, and countries who all want their own benefits.

Even if crypto is accepted as a means of payment, the possibility of fiat will not disappear. There is a lot of backlog in the banking and fiat sectors, which is more evident in the war between Russia and Ukraine, they were almost unable to use their services and cash when the war broke out. But the government will always control us no matter what, fiat is the best means by which they can continue to centralize with us, so it is hard to see the end of fiat and banking.

People have seen the benefits of crypto market particularly during this pandemic crisis. Many people have lost their sources of income. And they discovered crypto market as potential source of additional income. However, it depends on how people are getting on board here. Are they using their programming or other technical skills or just joining these bounty campaigns? Either way, it depends on the person how he will use his knowledge and skills to generate income from this market. They are also discovering that in crypto, you can be your own bank but you should know your responsibilities to take care of your assets.

We will indeed see crypto increasingly in demand, because crypto has started to prove to have many benefits. Like when the pandemic started,
a lot of people lost their income, but crypto shows that in a pandemic situation can provide income to many people. Because crypto is different
from other assets, crypto performance is amazing in a pandemic situation, even in 2021 some coins managed to break records and provide
huge profits. Then now in a war situation, we can make donations to victims in Ukraine through crypto, which is a much faster process than
making a donation through a bank. So the future of crypto is definitely bright, although today there are still countries that reject crypto.
But with the passage of time, circumstances can change, a country that used to reject crypto, may turn into supporting crypto.

Yeah there could be a long way to go for cryptocurrency because of access to control and the government won't sleep over giving up control of currency whether fiat or crypto as that generate power for them. However cryptocurrency is finding ways into the fibres of financial importance and recognition to the world stage, take example with Ukraine that is requesting for donation through cryptocurrency to execute the war with Russia.

Adoption sooner or later is bound to happen but as you said not many people like about it especially those who don't like developing technology.
Their mindset is only limited to previous thoughts that should have been changed, but they seem to reject something new because they feel they have benefited from the old system.

everything takes time and rest assured that one day the dominance of fiat will be replaced by crypto.
Paper money destroys nature and fiat can be printed as much as anything....BTCitcoin fixed it

Banks are one of the important points or arteries in the body of the global economy, you can withdraw your money in the form of cash and stay away from using banks but you are still linked to this economy.

Devaluation of the local value of your currency, printing money, inflation and other problems you will face even if you do not deposit your money in the bank or support the banking sector.

Therefore, the use of alternative systems, such as the return to gold, silver and other metals, which gain its value and purchasing power in all countries.
Or try to buy bitcoin and experiment with digital decentralized systems.

Other type of investment is linked directly to Fiat money.

Yep, I thought freezing account is only for serious crime, but then I see more than enough case where an authoritarian government freeze people's account simply because of politics. I don't think banks can detach from the government, and be more neutral/outside the system. Perhaps only Swiss Bank can serve this purpose, i.e. to save money and be rather free of politics, but it won't be practical for average joe. Therefore, we need Bitcoin more than ever, and now its value proposition become clear as day. Bitcoin is bigger than banks.

Institutions are hard to trust but also difficult for us not to use, even when transacting with cryptocurrencies we still need banks to be able to withdraw our fiat and transact normally for daily needs.
For now it even looks impossible to replace banks with other financial systems but who knows there will be a replacement even though it still looks impossible.
As CEX rules over our assets so do banks that must be done carefully in using them. I don't think it's a bank failure but it's a system they have to run in accordance with every country's regulations.

No matter what, banks are still indispensable to our lives. BTC has opened up a decentralized future where everyone can be their own bank but using bitcoin sometimes requires you to have some tech knowledge, if we accidentally transfer money to someone by mistake, the possibility of us getting it back is almost zero. And with banks, they provide a variety of user support services. We may need to borrow money, claim when there is a dispute, complaints when disputes arise...They will be the ones to help us out, obviously banking is a necessity.

Yes and this is why I am surprised Bitcoin isn’t going up when all the evidence is present. Banks can and have frozen assets on a whim. So if people hold Bitcoin they are free from this happening.

Look at what is happening in Russia now. There is a bank run and there is a limit on the amount of money you can withdraw. Basically not enough physical money inside a bank to process withdraws.

Bitcoin fixes all of this and the fact that it’s not leading and rising is surprising.

It is not a failure, it's a known mechanism from the banks because they are centralized and they're in full control of money deposited into them. If you're using a banking service then you expect them to be showy that you're at their mercy and you can't do anything with every decision they make.
Good thing that we have bitcoin where we can transfer our wealth and hold it within our hands. Unlike putting your wealth in the bank, they might even give you hard time claiming your own money and wealth if it's sums of amount.

The banking system is much followed, because one can reach the respective bank and request support. This works good with a common person who isn't much into technology. The same can't be expected to happen with cryptocurrency, because we don't have physical support centres. Maybe in future this could get implemented depending on the massive adoption taking place.

A few years ago I worked at a bank in my area and it sounded pretty bad at it but we can't forget one important thing here.
The influence of the bank is still very large and even though what you say is true, many people still believe in the bank because they do not feel the effect at this time, it is only temporary.
There are still many benefits that are felt by those who believe in banks and that is proof because they are still quite strong in terms of support

in centralised exchanges where kyc is compulsory, freezing of the account is still very possible to happen esp under the government's mandate. however, it would take more time to put into effect unlike with traditional banking sector. because the traditional banks are directly tied to the government, they can easily implement the mandate. whereas, if the crypto-exchange is not under their jurisdiction, they will need strong reason and documentation why they need to freeze the acct of their customer.
if you are just a small crypto user who doesn't want your govt to interrupt your crypto txs, you can opt using nonkyc exchanges like kucoin.

The answer is Bitcoin, it's decentralized and no one can control it except you send to centralized platform. Bitcoin wouldn't crash as long as there's no something big happen entire the world. Look at the Bank failure, it's only affect to Ruble, though it give less effect to entire world too. If WW3 begin and all country are participated to defend their own country, all asset e.g. Fiat, Precious metal, Stock, Bitcoin will crash and become worthless since anyone only want foods and weapons to survive.

The chances of it happening depends on the level of KYC, in a fully verified exchange account like Binance,  everything needed is for any governmental organization responsible for crime and investigation to seek for freezing of a customer's account from Binance, Binance will immediately comply. But there are still some exchanges that people can still withdraw without KYC required, exchange like OKX and Kucoin, the chance of freezing a customer's account will be low, but it can still happen in fraud cases linked to the customer's account which can be traced on blockchain.

The bitter but unfortunate truth, The banks regardless of their failures repeatedly are not going anywhere anytime soon. It is how deep the majority have been brainwashed by the government to sticking completely with fiat banks and not giving cryptocurrency a chance at all. It is definitely in the plan of the government so as to keep people under it's control. Exchanges may still seize your money as banks can but the chances of it happening with them is less as you know most exchanges are owned by individuals of other Nationalities not necessarily your own, and they may not directly be under the influence of the government of your country.

It's easy to see that Fiat isn't going away any time soon, only those who are into crypto will understand that the world is craving for decentralization but millions of people still find FIAT as a easier way of spending than crypto this is why I believe that crypto still have a long way to go if truly it's going to be a better easier means of making payments in future, all we have to do is keep supporting this technology and hope for the best, since the government will always be in our world centralisation will keep ruling.

I don't trust banks. But, not going through them will get you in trouble and trusting them will do the same. So what do you do? Just let it be.
Government used their service for a long time and it is a tradition that cannot be cut down just like that. Even with cryptocurrencies being offered it won't suffice to be grounds on seizing them.
Use what you can at your best knowledge and if you think the bank is not the right place then go research for a new one. Only be sure that the other end sender or receiver also know the option you chose.

1.Not all Russian banks are excluded from Swift.AFAIK,the biggest Russian bank Sberbank wasn't excluded from the SWIFT system.
2.The banking system will remain strong in the upcoming decades.People will always have the need to borrow money.
3.People aren't really that dependent of the banks.You can deposit money into a bank,if you want to.Nobody is forcing you to do that.You can use bank loans and credit cards if you want to.Nobody is forcing you to borrow money and use credit cards.Saying that the people are innocent victims of those greedy predatory bankers is pretty much an oversimplification.There are greedy bankers for sure,but nobody in the world would force you to use a bank.Probably your employer could force you to make a bank account,in order to receive your salary,but you could just withdraw the money.

I think the OP is partly right, although I would not call it "failure" on the part of the banks. Banks provide necessary services for a large part of the population. Let's think for example of direct debit bills and the advantage they brought at the time. Today with the Internet and Bitcoin, we have the opportunity to be our own bank but I think most people will continue to use traditional banks, which will have to adapt and are already doing so. Even many of us will continue to use traditional banks and part of our wealth will be in our own bank, which is the Bitcoin, keeping our private keys ourselves.

For sure, they will place an embargo on ones earned finances because they have control over it even than you the owner and remember you've signed their conditions and term of service which serve as their policy which give them more authorization over you. but the way out is available, which is cryptocurrency (bitcoin).


This is more simple and practical using Russia and Ukraine war, consider the Russian economy now, things were not the way it used to be, the swift ban has place Russia on economy inflation and at the verge of recession.


The world is suffering the pandemic effect of covid yet another human version is enacted through engaging in war, all this are part of the factors affecting economy stability and livelihood.

Now you can see that majorly it's not the banks but governments and individual's responsibilities.

The support for banking is still felt all over the world even in Russia that they got banned from Swift, you can still see queues around the bank and ATM despite the awareness that Russian banks don't have money. The banks still relevant another instance with the banks in Russia, after the remover just recently the Russian government now making plans to trade with China. The bank is still a huge institution that the world is relying on for global trading.

Be it as it may, people will always still depends on bank and the local currency issued by government. Truly it is centralized and banks have the full control (but do not forget this is the same as crypto centralized exchanges and centralized wallets), the money can be seized at anytime. As their are alternatives now which is bitcoin (on noncustododial wallet) and other decentralized currencies, fiat will still survive because people still see it as a means of easy spending as they are use to it.

But investment wise, I am still seeing it very annoying to see people having their fiat in bank for over many years without touching it and the banks encouraging people to invest in fiat with annual profit return which is actually not a profit but a loss as the fiat depreciates over time.

For having full control, decentralized currencies like bitcoin can be a good option but people that are buying it nowadays prefer its speculative value and also being a store of value over long term period. But there are still some people that wants freedom, full control over their own money and asset, some people wants privacy, the reason few people are making use of bitcoin.

There are alternatives now which is even better but people look more towards profit making and ease of use but best to for go privacy and full control. Some altcoins are even not totally decentralized and some are worst than fiat.

Today we have witnessed how easy is for the banks to freeze all assets that people rely on. The economy across the globe will change, trading will be much more difficult given the current situation. Over the last few years a lot of people have been affected by disrupting events and virus outbreak being unable to work and earn to support their families. It comes to the point where trusting the banks will no longer apply. Even there is war or not, the population still needs to work, travel and move money where needed. Other people have to travel from one country to another and if credit/debit cards are suspended, there will be no trade. The problem occurred in 2008 is just around the corner waiting to burst again but this time is different. We have to look at alternative ways to produce and distribute energy.