“The moment we can digitize treasuries, it’s game over for banks,” Cardano’s Founder claimed.
Cardano’s Founder – Charles Hoskinskon – believes the cryptocurrency industry should differentiate itself from the “unstable and volatile” banking sector.
Three of America’s leading financial institutions – Silvergate Capital, Silicon Valley Bank, and Signature Bank – were shut down by regulators earlier this month, propelling severe losses for numerous crypto-focused firms.
- In a recent tweet, Hoskinson opined that crypto should stay away from traditional banking since the sector is full of “unstable and volatile” institutions.
Crypto needs to de-risk itself from those unstable and volatile banks
— Charles Hoskinson (@IOHK_Charles) March 15, 2023
- He also predicted a “game over” scenario for banks once “we can digitize treasuries.”
- The collapse of Silvergate, SVB, and the crypto-friendly Signature Bank recently shook America’s financial system.
- Multiple cryptocurrency firms revealed significant exposure to the failed giants, with Circle being among them.
- The company behind the second-largest stablecoin, USDC, had $3.3 billion stuck in Silicon Valley Bank. The asset plunged to as low as $0.87 (CoinGecko data) shortly after that but restored its $1 value in the following days.
- The crypto exchange Coinbase said it held $240 million in corporate cash at Signature Bank, while Paxos had $250 million exposure.
- The President of the United States – Joe Biden – said earlier this week that Americans should have confidence in the domestic banking network, describing it as “safe.”
- He also touched upon the crash of SVB (one of the top 20 largest banks in the US prior to its demise), assuring that “no losses will be borne by the taxpayers.”
- On the other hand, investors in the institution will lose their funds because “that’s how capitalism works,” the political leader outlined.