, but they were recovering by Sunday, March 12. However, it’s unlikely that the Silvergate Bank debacle will cause long-term harm to the crypto sector.
In Latin America, which is primarily a crypto foreign exchange market where many firms buy stablecoins like USDC and Tether as a means of sending funds abroad, “the Silvergate fallout was problematic,” Thiago César, the CEO of fiat on-ramp provider Transfero Group, told Cointelegraph. That said, the Silvergate collapse probably doesn’t present long-term obstacles. “Fundamentally, a bank exiting the crypto industry does not hurt any blockchain, including Bitcoin,” Olszewicz added.Joseph Silvia, partner at law firm Dickinson Wright — and former counsel to the Federal Reserve Bank of Chicago — views Silvergate Bank’s liquidation more as a “cautionary tale” than a harbinger of tougher times for the crypto sector.
“Silvergate was highly concentrated and had longer duration securities. You can’t do both. You need to pick one. They would have been fine being this concentrated if they didn’t extend out duration on the asset side.” “For crypto, FTX was a big issue not just because of the volume but because of the staggering depth of the fraud and mismanagement. Silvergate appears to have just messed up asset-to-liability matching, which is an age-old problem in banking. It was not that the CEO was stealing billions from the customers.”
Others suggested that U.S. regulators are intent on scaring off traditional banks from doing business with cryptocurrency exchanges. Will it result in crypto firms moving out of the United States, with users going to peer-to-peer transactions as in China, as Samson Mow recently suggested?. The collapse of fiat banking for exchanges will just mean buying/trading goes P2P.March 3, 2023
FTX’s implosion damaged scores of crypto firms, including Silvergate Bank. By comparison, the fallout from the bank’s liquidation should be more contained.
Put your brain to the test with GtonQuiz, our new game that is as addictive as it is challenging!
You can avoid faith in human beings but you cannot avoid faith in mathematics(cryptography)
Why would crypto suddenly rise?
What the heck are you talking about, banking trouble is bullish for crypto, Bitcoin was created exactly for this reason, cointelegraph is totally disconnected with reality.
Banking troubles are rocking all markets.
That’s a feature, not a bug.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Nobody left to bank crypto companies’ — Crypto Twitter reactsSilicon Valley Bank's (SVB) sudden collapse and the closure of crypto-friendly bank Signature Bank have prompted the crypto community to give their 2 cents on what it could all mean for the future. Not surprising given the environment right now, but was a traditional “bank” really needed for cryptocurrency? I don’t know much about what they offered, but it feels like they were trying to hang onto old, familiar models. self-custody, brokerage accounts
Source: Cointelegraph - 🏆 562. / 51 Read more »