Decentralized Crypto “Bank” Could be Game Over for Traditional Banks, Says Cardano Founder
Cardano’s founder Charles Hoskinson recently took to Twitter to urge the cryptocurrency industry to distance itself from unstable and volatile banks. Hoskinson’s tweet comes at a time when numerous crypto firms are finding it increasingly difficult to find banks willing to offer even the most mundane services.
In his tweet, Hoskinson said, “Crypto needs to de-risk itself from those unstable and volatile banks.” He went on to suggest that if treasuries can be digitized, it’s “game over for banks.”
Crypto needs to de-risk itself from those unstable and volatile banks
— Charles Hoskinson (@IOHK_Charles) March 15, 2023
The tweet came just days after regulators closed Signature Bank, effectively shutting off one of the last easy options for crypto firms to stay connected to the traditional finance system. The failures of banks that catered to digital assets firms have important implications for the crypto industry, stablecoins, and the token market.
Despite the challenges the industry faces in re-establishing its connection with the banking system, supporters of the digital assets industry predict that it will eventually replace traditional banks. Hoskinson defends the credibility of firms like Circle, Paxos, and Tether, which have successfully endured under conditions that caused banks to fail, while the government continues to warn about the risks of crypto.
#Cardano Founder Defends #Crypto Firms, Emphasizes Fragility of Traditional Financial Institutions @azcoinnews https://t.co/c0AqrQGBFE
— AZCoin News (@azcoinnews) March 13, 2023
The idea of a decentralized crypto “bank” has been gaining traction in recent years, and Hoskinson’s tweet adds to this conversation. The decentralization of financial services has been a central goal of the crypto industry, and a decentralized crypto “bank” could offer an alternative to traditional banking services that are currently unavailable to many crypto firms.
As the crypto industry continues to mature, it will be interesting to see how it evolves and what role banks will play in this new landscape. Hoskinson’s tweet is a reminder that the industry must continue to push for decentralization and self-sufficiency in order to thrive.
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