Given the Signature Bank collapse, do you see any negative ripple effects coming for crypto?
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Senior Director Engineering in Travel and Hospitalitya year ago
Hard to comment on the relationship between both... but not that its been a little while - it doesnt seem they are relatedDirector of IT in Healthcare and Biotecha year ago
The bank and crypto problems are separate:The recent collapses of US banks (SVB, First Republic) is due to devaluation of bank assets with the increase of interest rates. The banks took on more risk than they should have to and got burned, this was significantly enabled with the rollback of bank regulations (Dodd-Frank) around 2018. I would expect many of these regulations to come back.
Crypto has different issues, and many of them, but at a high level it was an industry with many scams, little/no consumer protection, and unclear benefits to society.
With added regulations for the US banking sector (and possibly in other countries as well), the authorities may add additional regulations for crypto. I wouldn't call this "negative ripple effects", but this could potentially beneficial for the average consumer. For those looking to steal/scam funds, make a mint with shaky exchanges, launch an ICO, make illegal transactions, or start an ill-advised blockchain project - the crypto field will probably become a harder place to do business.
Director, Information Technology in Manufacturinga year ago
There shouldn't be a direct connection between the banking sector and crypto. The only connection, and quite far fetched in my opinion, will be that with banks instabilities, if people are not feeling comfortable leaving their assets there may pull some of the assets out and park it in crypto. But it's a stretch at the best. :)