Changpeng Zhao (CZ), the CEO of Binance, stated that the success of Bitcoin should never be dependent on bank failures.
“From the perspective of the crypto neighborhood, we should never base our success on the failure of others.”
A question about banks failures helping Bitcoin surfaced during a Twitter AMA. In response, CZ stated that he thought banking and cryptocurrency could coexist and that it wasn’t a zero-sum game.
Furthermore, CZ refuted the idea that the success or failure of the banking industry has any significant bearing on Bitcoin, emphasizing that cryptocurrencies are just one option for storing money outside of banks, along with real estate, stocks, and precious metals.
Institution for First Republic Financial
After Washington Mutual’s demise in September 2008, First Republic Financial Institution’s seizure by regulators made it the second-largest collapse in American banking history.
In March, First Republic was given a $30 billion lifeline by 11 separate banks, including Bank of America, Wells Fargo, Citigroup, and JPMorgan. Since then, it has kept raising the alarm as the Federal Deposit Insurance coverage Company (FDIC) tries in vain to negotiate a buyout.
After the company’s demise, JPMorgan has agreed to gather its assets, including its loans, securities, and deposits, with the intention of renaming the current branches as “JPMorgan wealth facilities.”
Cryptocurrency isn’t the only option.
CZ expressed his opinion on the topic and hinted that other financial institution collapses would take place, stating that the banking industry is well-established and prone to inefficiencies. Additionally, companies working in this field are motivated to address risk because they are aware of bailouts.
I don’t blame the players, but you need to look at the game, I say.
Following the failure of Silicon Valley Financial Institution and other events that revealed vulnerabilities, Bitcoin rose above $20,000 on March 11 and reached a peak of $31,000 four weeks later.
The change was mostly ascribed to shifting investor sentiment toward exhaustible assets, like Bitcoin, because of its limited supply.
