Banks Can Seize Your Stimulus Check; Bitcoin the “Unseizable” Hard Asset Fixes This
This week, more Americans will start receiving their stimulus checks of $1,200 to offset the effects of coronavirus pandemic. These funds will be wired directly to eligible recipients’ bank accounts.
However, this money might not make it into your hands as Congress hasn’t expected the CARES Act Stimulus checks from private debt collection.
According to The American Prospect, the Treasury Department has given a green light for banks to make a “business decision” and use this to their advantage, citing leaked audio.
Reportedly, last week, in a webinar with baking officials, the chief disbursing officer Ronda Kent clarified twice that “there’s nothing in the law that precludes” these payments from
“subject to collection from the bank to which the money is deposited, if the payee owes an outstanding loan or other payments to the bank.”
Stimulus checks of up to $1,200 and $2,400 in the case of married couples and $500 for each qualified child are being sent to people. Not only those with an adjusted gross income of $75,000 but with no tax liability will also get the stimulus check.
JPMorgan Chase is the only bank to confirm that the recipient will get the full benefit of the Stimulus. Banks like Wells Fargo, Citibank, US Bank, and Bank of America haven't ruled out using these payments to pay off the outstanding debt.
“[Treasury] has the ability to say that these payments are exempt, and they’re not doing so,” said Lisa Stifler, debt collection lead at the Center for Responsible Lending.
“Under this scenario, the bank could use the $1,200 payment to offset the $1,000 in overdraft charges, even if the individual thought the account was closed.”
In response to the Fed distributing emergency funds via intermediaries the user is indebted to, Neeraj Agrawal of CoinCenter tweeted, “Money should be harder to seize.”
We can dream
— Neeraj K. Agrawal (@NeerajKA) April 14, 2020
As Bitcoin enthusiasts and industry commentators have repeatedly called out, bitcoin is an unseizable asset. Unlike gold, bearer bonds, and cash, the world's leading digital asset can't be seized or confiscated.
Bitcoin is unseizable & uncensorable.
Tokenized Securities and Tokenized Real Estate are not.
Tokenized Securities derive their value from physical reality, approval & authority.
Bitcoin derives its value from pure psychology.
— Murad (@MustStopMurad) May 28, 2018
“When you’re worried about your assets being seized or becoming inaccessible to you, Bitcoin’s non-seizability becomes very attractive,” said Bitcoin bull and Morgan Creek Digital’s co-founder Anthony Pompliano.
At that time, he said this is what makes it important to the people of India & Hong Kong. But now it looks like, for the US citizens as well, the hard asset is a good alternative to cash.
Many people are actually planning to buy Bitcoin with their stimulus checks and have already started to.
I guess that settles that… pic.twitter.com/5prd9cYe4k
— Alistair Milne (@alistairmilne) April 14, 2020
According to analyst PlanB’s recent poll, a good 30% of 12,702 voters said yes to buying BTC from their stimulus checks.
Question for US followers: Will you buy #bitcoin with that $1200 UBI money the FED/Govt will give you?
— PlanB (@100trillionUSD) April 11, 2020