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Crypto not responsible for bank problems says Blockchain Association

Press Releases Crypto News Crypto-News Crypto not responsible for bank problems says Blockchain Association

The Blockchain Association chief policy officer, Jake Chervinsky, said that the rise in adoption of crypto in the U.S. has no impact on the recent high-profile collapses in Wall Street and that just like other traditional finance firms, crypto companies are also exposed to the contagion.

U.S. financial institutions face uncertain times

In an effort to clear any misconceptions about crypto’s role in the current crisis affecting several financial giants in the United States, Chervinsky stated that crypto companies are affected just as much as other institutional customers.

He tweeted that despite crypto firms being blockchain-powered, they also hold fiat currency to pay “salaries, rent, and everything else any other company does.”

As bank customers, crypto firms are no more risky than any other depositor.

They hold dollars to pay salaries, rent, and everything else any other company does.

The bank situation is scary, but as @POTUS, @SecYellen, and many others recognize, crypto has nothing to do with it.

— Jake Chervinsky (@jchervinsky) March 13, 2023

The Washington-based lawyer went on to say that the current situation warrants cause for concern from all quarters and contrary to narratives being pushed on social media amid the crisis, crypto is in no way responsible for the collapse.

The financial sector in the world’s largest economy is currently on a knife edge, the banking sector has witnessed a couple of high-profile collapses in the space of days where three large banks in the United States with significant exposure to the technology sector and cryptocurrency have failed.

The crisis started on March 8, when the crypto-powered bank, Silvergate Go to Source to See Full Article
Author: Ogwu Osaemezu Emmanuel

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