After a bank in Paraguay collapsed, CryptoPotato raised a straightforward question: when trust in banking institutions suddenly breaks down, can self-custody of Bitcoin truly offer protection?

· The source material only provides this framing; it does not disclose the bank’s name, size, or details of depositors’ losses.
· The source material offers no evidence on whether self-custody can help during a bank run and liquidation. This is a topic raised for discussion in the report, not a confirmed conclusion.

When a bank gets into trouble, would you prioritize self-custodied assets?