Prepaid card ponzi scheme results in bank run at Chinese Supermarket \ stacker news ~econ

Prepaid card ponzi scheme results in bank run at Chinese Supermarket \ stacker news ~econ

In late March, Zijin Supermarket in Yichun, Jiangxi Province, China, (the largest supermarket in the area) abruptly closed without prior notice There is this common practice in China -- customers purchase e-vouchers (like prepaid cards) to gain benefits like special discounts. But these prepaid fund balances are, of course, not protected and when the music stops, those customers are left with nothing more than worthless IOUs. When news of this s…