Chief Investment Officer at Hayman Capital Management, Kyle Bass (@Jkylebass) is also reporting that there are currently ‘bank runs’ happening across the country. There are also fears that China may pass an emergency law which could freeze a Hong Kong citizen’s assets arbitrarily.
Run on banks: ATMs out of money across Hong Kong. Many queuing up to withdraw. Many have run out of cash. #HongKongProtests #AntiELAB #FreeHongKong— Hong Kong World City☔️🖐🏻👆🏻 (@HKWORLDCITY) October 5, 2019
Should we all line up at ATMs as an act of civil disobedience?
Source- LIHKG pic.twitter.com/DtC9c0toUi
Given the uncertainty surrounding Hong Kong’s own banking system (especially those linked to mainland China), Hong Kong residents have been turning to cryptocurrencies in growing numbers. Around $12 million Hong Kong dollars were traded on LocalBitcoins last week, a number that trumps trading volume even at the height of the 2017 bull cycle. Trading volume on LocalBitcoins is calculated weekly, so we will have to wait to see if this trend continued for this past week. Despite some claiming the spike was due to ‘one pro trader’ who made 30 high-value trades, new weekly data will finally put this question to rest. However, as of now, the trend seems bleak. The sudden explosion seems to be directly related to the worsening financial situation in Hong Kong. Initially, Hong Kong protestors seemed relatively disinterested in cryptocurrencies, but that sentiment seems to be changing in the past few weeks. Hong Kong may provide us with the first-ever case study of whether a collapsing financial order spurs cryptocurrency adoption. As for now, it’s too early to say anything conclusively. Do you believe the lack of ATM cash could force more cryptocurrency adoption in Hong Kong? Let us know your thoughts below in the comments.
Bank runs all over Hong Kong now. ATM machines running out of cash but there is something more important…failed leader carrie lam(b) can now officially confiscate bank accounts and assets without recourse. The HK legal system is essentially gone. #Bankruns #HKexit https://t.co/jz9sPrA30U— 🇺🇸Kyle Bass🇺🇸 (@Jkylebass) October 5, 2019
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