Cardano Founder: Crypto Needs To "De-Risk" From Unstable, Volatile Banks
The macro-financial landscape remains to be quite turbulent owing to the collapse of three well-reputed banks. As a result, investors and depositors have already started following the risk-aversion drill. In...
The macro-financial landscape remains to be quite turbulent owing to the collapse of three well-reputed banks. As a result, investors and depositors have already started following the risk-aversion drill. In fact, even stalwarts of the cryptocurrency ecosystem have also been advocating the same. Tweeting on similar lines recently, Cardano founder, Charles Hoskinson said,
“Crypto needs to de-risk itself from those unstable and volatile banks.”
Furthermore, a user went on to highlight the need of having a decentralized crypto bank at this stage. Reverting back, the Cardano founder claimed that it would be “game over” for banks when treasuries are digitized.
Also Read: HSBC, Deutsche Bank, Santander ‘Willing’ To Cater To Crypto Clients
In fact, Cathie Wood also tweeted about the instability in the banking system and how crypto networks remained unaffected. Elaborating on the same, the Ark Invest executive said,
“While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric.”
Crypto and regulations
Right before the banking crisis materialized, regulators were in the midst of taking back-to-back enforcement against firms from the industry. Cathie Wood added that instead of putting “decentralized, transparent, auditable and well-functioning financial platforms with no central points of failure” on the hook, regulators should have been focused on the “centralized and opaque points of failure” plaguing the traditional banking system. Elaborating on the same, she tweeted:
Also Read: Did Goldman Sachs’ $21.45B Txn Trigger Silicon Valley Bank’s Collapse?
Pre-banking crisis actions aside, it is worth noting that the New York Department of Financial Services recently clarified that the decision to shut Signature Bank had “nothing to do with crypto.” In fact, a DFS spokesperson went on to assert that the agency has been facilitating well-regulated crypto activities for “several years,” and it is a “national model” for regulating the space.
While people from the space like Nic Carter opined that the “DFS is covering their tracks” by claiming that the bank’s shutdown had nothing to do with crypto, others were relieved by the agency’s assertion. Even though the landscape is uncertain at the moment, it is important to remember that when centralized institutions cause the trust to falter, panic ensues, and the pillars of finance start crumbling. Thus, the path of transparency and decentralization is likely deemed to emerge victorious at the end of the day.
Also Read: Silicon Valley Bank Donated $73.4M to Black Lives Matter & Other Movements
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