Will the US Crisis Be Global? - Fintech Weekly Weekend
The risk is real, but let’s see how all this is already affecting you – and the possible outcomes.
- Silvergate announced voluntarily liquidation on March 8, 2023
- Silicon Valley Bank was shut down on March 10, 2023
- Signature Bank was shut down on March 12, 2023
Fintech Weekly Perspective
As the weekend approaches, it’s time to draw conclusions – at least to start the next week.
The current crisis that hits the US-based banks is mainly the result of the measures taken by US regulators to fight inflation. Some of them, like the closure of the crypto-friendly Signature, seem extremely arbitrary.
Despite this, some cryptos are working like save havens – USDT is a great example of this.
Investors leaning towards some cryptos instead of others is no coincidence: it seems that the cryptos that are perceived as more “institutional” make investors feel safer.
This might lead, in the future, to a rising importance of CBDCs: as we noticed, it seems that all the actions against the crypto space were addressed to all those assets that are completely out of the control of regulators.
A stronger regulatory activity usually follows all crises, and the current crisis seems very similar to 2008 – despite many experts totally rejecting this idea, we identify at least three main similarities between the 2023 crisis and 2008 crisis.
To discover them, click the link: Will the US Banks Collapse Affect the World?
Many consider a possible global effect as a sort of panic spreading, and actually some markets – like China, and the fintech industries of Africa and India – seem only marginally affected by the collapse so far, and they’re still able to gather investments.
Nevertheless, the money of depositors and investors around the world is constantly erased: fintech, as well as the tech industry as a whole, are global markets, and once the institutions linked to these sectors collapse, a domino effect is extremely probable.
Fintech Weekly Weekend picks
(Maybe) we were right also about the attitude of regulators towards certain cryptos – see the article published by CoinDesk
China clarifies that the impact of SVB on its market is extremely limited – and uses harsh words against the US – see Global Times