Home » Featured » China Begins to Crackdown on ATM Cash Withdrawals; Bitcoin’s Liquidity as Solution
Click Here To Hide Tor

China Begins to Crackdown on ATM Cash Withdrawals; Bitcoin’s Liquidity as Solution

Stepping upon the path of India, China has begun to impose some serious capital controls and restrictions on cash. On December 8, the Chinese government officially halved the amount money UnionPay bank card holders can withdraw from ATMs in Macau, in an attempt to regulate the Macau gambling industry and prevent the devaluation of yuan.

According to SCMP, several billions of yuan are sent from Beijing to Macau on an annual basis, due to the massive expenditures of gamblers in the city. By restricting the daily withdrawal limit in Macau, the government hopes to see a substantial decrease in the outflow of the Chinese yuan.

The daily withdrawal limit cut from 10,000 to 5,000 Macanese pataca is set to take effect on Saturday, December 10. Considering that US$1.25 billion worth of Macanese pataca is withdrawn in Macau on a monthly basis, the withdrawal limit cut is set to decrease the outflow of the Chinese yuan by around $600 million.

Almost immediately after the report of SCMP, the stocks of casinos and hotels in Macau rapidly declined, with shares of Las Vegas Sands, Wynn and MGM falling by 13%, 12% and 7% respectively. The casino market shock is presumed to continue as the Macau gambling industry’s largest market, China, will see nearly a 50% decline in revenue.

If the Chinese government continue to restrict the outflow of Chinese yuan to large gambling industries like Macau, it is highly likely that gamblers and investors will begin to seek out for alternative assets or stores of value to bring outside of China.

At this time, two safe haven assets gold and bitcoin are the most viable alternative to cash. However, due to the physical properties of gold and the restriction of gold exportation, the only practical method of moving funds outside of China to Macau is bitcoin.

If at least 5% of investors and gamblers affected by the Chinese government’s crackdown on ATM withdrawals shift towards bitcoin, the demand for bitcoin will surge in local markets, thus pushing the price of bitcoin in China and in global markets.

The price of bitcoin has already begun to react to the initial market shock and capital controls in Macau and China, increasing from $766.8 to $772 within the past 24 hours.

A Macau finance industry official told SCMP that a similar situation as India is ongoing in Macau, as people have begun to line up in ATMs to withdraw 10,000 Macanese pataca at a time. The official confirmed that gamblers and investors are using “stacks of cards” to withdraw as much cash as possible.

“What has happened is that individuals are turning up at ATM machines with stacks of cards from individual account holders and are withdrawing 10,000 a time,” the official said.

While Beijing and the government is yet to respond to this situation, it is likely that the Chinese government will push for stricter regulations on cash withdrawals, which will further push the demand for bitcoin.

6 comments

  1. The war on cash has been happening for a while now, tptb want a cashless society,

    Ive always thought bitcoin to be the opposite of freedom, all transactions can be watched on the blockchain, the control freaks dream.

  2. No, they do not “want” a cashless society, but due to the scams they are carrying out backed by the threat of force. The governments to try to hide their own disasters by demanding the population not show the governments for empty puppets. So they turn to things like this before they turn to force. And inevitably to “Cashless”.

  3. The problem with Bitcoin is that it could turn out to be nothing more than a Ponzi scheme. It’s a fact that most bitcoin is currently being hoarded. Libertarian bliss-ninny Roger Ver will by another Ferrari while Joe Schmmo Bitcoin sees his bitcoin investment circle the drain. Of course, altcoins are here to stay, but humans have never had a monetary system that wasn’t controlled by an elite and Bitcoin is no exception. What do people see altcoins attaining in 5 years? Ten? Curious.

  4. Governments everywhere want to ban cash so that they can monitor everything and everyone. Imagine having to use a credit card or even worse your phone for every transaction you make. The government and big corporations will be able to follow your every move.

    It’s the most diabolic plan for world domination. Whenever they want, they will be able to deny you any transaction. Remember Wikileaks and VISA? Now imagine what will happen when governments will have the ability to squash every reactionary movement. And you won’t be able to do anything because it will be the law and you won’t be able to challenge it.

  5. lfb.org/ice-9-jim-rickards-reveals-elites-master-plan-3-ways-protect/

    Fuck the elite and the bankers and the police and the politicians, they are not our rulers or masters.

  6. Cashisgoingtobebanned

    You don’t need to be an oracle to see that the war on cash is intensifying and accelerating rapidly across the world. It is a key part of the New World Order agenda, because it removes some of the last vestiges of privacy and anonymity that we still have in today’s world. Without the ability to freely transact anonymously with cash, our freedom is greatly restricted, because so much of our life revolves around the use of money: spending habits, income, expenditures, amount of tax paid, etc. To know someones’ complete financial history and current position is to have great power over them.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Captcha: *