Bitcoin

China is preparing for a new run on the bank, large transactions should have been reported to be BTC, Right

In China, it is a pilot program, have begun to make huge trades in order to keep up. These high-profile transactions as a result of concerns about the state of the economy and the Chinese financial system. The financial system has to do with the bubbles, is full of bad debts and the economy is suffering from the corona virus, according to the international monetary Fund.

The first is a pilot project

Charlie Zhu and ms. Evelyn Yu of Bloomberg, wrote that the pilot program will begin in the province of Hebei. Customers must be pre-notified of large withdrawals or deposits. The two-year program will be in October and will be expanded to Zhejiang province, and Shenzhen, it has an effect on more than 70 million people.

The Chinese investors have to deal with more and more loans that are really bad are going to see now is that the economy is slowing down. The international monetary fund said last month’s two bank runs poorly at that could be taken by the authorities. Last year, China has been only a few commercial banks, an indication that the economy is fragile.

Difference to the private individual and the business

The pilot program aims to control on an unreasonable demand large amounts of cash to strengthen the systemic risk, which means, according to the PBOC in a statement. In practical terms, this means that the companies that trades to 500,000 yuan (63.000 euros) outstanding on this report. The threshold for individuals is set at 100,000 yuan (€12,500) to 300,000 yuan (38.000 euro), depending on the region.

During the pilot, transactions are not reversed, but the banks and lenders need to all of the risks, be able to explain and follow up with customers who come from industries with a high risk of-or who have frequent transactions.

The S&P Global reported that the Chinese banking system, up from 41 billion dollars covers a fifth of them are non-performing loans. Also, they say that the small banks are estimated to be 349 billion us dollars in fresh capital is needed.

We would like to eliminate the need for a currency, which will suffer from inflation, and censuurbestendig it is. Which is not a bank or a public authority, the influence it may exercise on the transactions.

In that regard, it would be a digital version of the yuan, the Chinese central bank has more tools to get the funding to check it out.

About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.

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