Hong Kong protesters reportedly tried the tactic in their latest effort to stop what they see as unfair practices of their government.
A prominent leader of the protesters called for a run on the banks, urging people to drain their accounts. The call was music to the ears of bitcoin enthusiasts, many of whom lit up Twitter with their reactions.
Prominent Hong Kong pro-independence political activist Chen Haotian has called for a run on Chinese banks, asking that everyone withdraw their money on the same day.https://t.co/R6wborHhHB
— Paul Joseph Watson (@PrisonPlanet) August 15, 2019
Fierce opposition over extradition
The Hong Kong protests have been raging – mostly peacefully, until recently – for more than four months. They kicked off after Hong Kong officials announced a plan to allow those who were accused of a crime to be extradited to mainland China for trial. People worried that the city’s judicial independence could be further eroded if such a plan goes into effect.
The plan has been tabled, but the protests have continued. Many remain enraged over the political environment. They’ve hit the streets and last weekend, they even shut down the city’s airport in protest.
Pro-independence political activist Chen Haotian this week called for the bank run. Previous showdowns between protesters and police resulted in several injuries.
This is wrong again. This will be economic sabotage. Im not chinese but the person who shared to me saud he is urging a bank withdrawal? You are urging a bank run and this is not good. #antiELAB pic.twitter.com/8Wz2EUUeyM
— cim (@cim_cv) August 15, 2019
Now’s not the time, bitcoin people!
By pulling deposits from banks, one thought is that the People’s Bank of China’s influence on the Hong Kong economy could be reduced. Those who support the bank runs presumably think they can trigger an economic crisis.
Enter bitcoin enthusiasts, many of whom cheered for the bank run proposal. The logic was people would put their money in bitcoin.
No matter, the turmoil in Hong Kong now is causing flashbacks to Tiananmen Square. Showing some couth now could be best.
This bank run won’t help bitcoin that much. Bitcoin is a fringe curiosity amongst the mainstream in Hong Kong still.
— Cory Pchajek (@corypchajek) August 16, 2019
At this point doesn’t Bitcoin just become a much better bank?
Less risk of a bank run.
Money actually there.
Privacy moving globally “interbank”.
Outstanding “interest” rate.
No account fees.
— damiendonnelly (@damiendonnelly) August 15, 2019
I guess they run on fractional reserve....and would surely be limited in how much money they add to money supply without HKMA? The idea of a bank run...not a good llook for Hong Kong. Hide money in bitcoin if you don't need for 1 to 2 years, avoid taxes that fund "police"
— bitcoincyclist (@bitcoincyclist) August 16, 2019
For both the protesters and bitcoin folks, the bank run strategy proved fruitless.
Hong Kong activists did not withdraw their deposits en masse, and the bitcoin price did not move higher.