In recent weeks we have seen a number of banks at risk: Credit Suisse, First Republic Bank, Signature Bank and the one that started the domino effect: Silicon Valley Bank (SVB), the 16th largest financial institution in the US, and a leading financier of startups of the world.
This was the biggest failure of an American bank since the global crisis of 2008 and in order not to repeat the apocalyptic scenario of global impact, the US government, through its central bank (Fed), Treasury and the FDIC, decided to cover all account holders, regardless of the amount deposited.
“This US government intervention in the financial system created panic in the traditional market, which recalled the 2008 real estate bubble crisis, which spread throughout the world.”, explains Denise Cinelli, country manager of CryptoMarket in Brazil, one of the largest Latin cryptocurrency marketplaces, and adds: “this same year , Bitcoin emerged, a decentralized option to the financial system, without state intervention and in which everyone owns their money. And since then, cryptocurrencies have consolidated themselves as an investment for those who want to protect their capital”.
A proof of this was the appreciation of bitcoin with each news about the crash from the banks, with BTC rising from $19,574 with the SVB issues to over $28k:
“Here at CryptoMarket we are more than convinced that Bitcoin will be increasingly used as a reserve fund of values, mainly to escape inflation since the dollar, real or any other currency that is regulated by their respective central banks are at risk of interference … which does not happen with cryptocurrencies”, points out Cinelli.
Guest author: CryptoMarket
Founded in Chile in 2016, with just two years on the market, the fintech received an investment of US$ 600,000 from Consensys – which has among its founders, Joseph Lubin, one of the creators of the Ethereum cryptocurrency, the second most valued in the world – and from Magma Partners together.