Charles Hoskinson, Cardano’s founder, made a statement on Twitter emphasizing the need for crypto to cut off ties with traditional banks as the crypto industry has high records of unstable and volatile financial institutions. His opinion comes as a result of the ongoing crisis and the collapse of about three reputable financial institutions, of which the most recent is the collapse of the New York-based Signature Bank.
In response to Charles’s tweet, a user suggested that crypto banks should be digitized, and once that happens, the Cardano chief said that it would mean the end for the traditional banking sector. However, the response throws more light on the potential for cryptocurrencies to produce new decentralized alternatives thereby cutting off traditional financial systems.
Notably, crypto firms are beginning to have difficulty finding banks that are willing and ready to offer even the most ordinary services. As such, supporters of the digital assets industry have predicted that digital assets will eventually replace traditional financial institutions, as the crypto industry is facing challenges in establishing a connection with the banking system.
Recall that last month, US authorities pressured traditional banks to cut off connections with crypto firms as a result of skepticism about crypto from different bodies and individuals.
Crypto Industry Continues to grow
Despite all the negative cascading effect which has affected the confidence in the sector, the crypto sphere has continued to experience tremendous growth with the evolving of new projects, ideas, and initiatives daily. Interestingly, a recent report revealed that crypto investments recorded an outflow of $32 million following harsh crypto regulatory action against the US digital asset market.
However, Binance CEO, Chanpeng Zhao advises players not to slow down on their crypto adoption strategy as their reluctance may affect their existence in the near future.
Meanwhile, Nouriel Roubini in a Tweet a few days ago gloated over the collapse of several banks doing crypto business. In his own belief, cryptocurrencies are dangerous and unstable investments, and banks that deal with them are putting themselves at risk. The controversial economist’s statement would help further validate his previous criticism of crypto.