Simply put, both banks were hit by the same problem: the classic bank run — pick 10 books you’ll want to read on Sunday from columns and interviews published this week.
Why did Silvergate Bank and Silicon Valley Bank collapse?
A major problem has arisen for financial institutions associated with the innovative and forward-looking sector of the economy.
Silvergate Capital, the holding company of Silvergate Bank, which has focused on serving the emerging crypto economy since 2016, announced on March 9 that it will scale back its banking operations. And Silicon Valley Bank, which has long played a similar role for start-ups, declared bankruptcy on the 10th, transferring deposits to the Federal Deposit Insurance Corporation (FDIC). …read more
Bitcoin, made for this moment
U.S. bank stocks are falling as the failures of Silicon Valley Bank, Silvergate Bank and Signature Bank continue to ripple through the market. US online broker Charles Schwab was suspended from trading on the morning of the 13th.
On the other hand, the crypto asset market, including Bitcoin, rose by double digits. It may be the first time Bitcoin has risen in a risk-off environment. Maybe Bitcoin was just made for this moment. …read more
Similarities between this crisis and the 2013 Cyprus crisis that drove Bitcoin higher
Cyprus in 2013, when the collapse of the Silicon Valley Bank would benefit Bitcoin, highlighting the flaws in the fractional reserve banking system and drawing attention to Bitcoin as a hedge against the centralized banking system, said a cryptocurrency insider. He pointed out the similarities with the crisis. …read more
Should money be invested in Bitcoin? Should I keep it in the bank?
Three banks failed in less than a week. The US government has embarked on deposit protection to prevent further panic. There is a great deal of concern about whether it is the right move to effectively bail out two banks facing bank runs due to poor management and one into bankruptcy (more precisely, voluntary liquidation), and the risk of further bank failures. remain.
Should I withdraw my money from the bank and hide it under my mattress or invest in bitcoin? …read more
Crypto Assets and Banks, Regulations and the Future
For years, cryptocurrency companies have struggled to build and maintain relationships with banks. This is due to a lack of regulatory clarity. Currently, there is increasing pressure on US and EU banks to distance themselves from the crypto industry.
While it may sound positive for crypto as it seeks to establish a code-governed financial system without the need for intermediaries, a return to bank access would be devastating for much of the crypto industry. damage. …read more
The multi-chain era is coming to an end
As more companies added blockchain to their strategic roadmaps, so did my frustration. For some reason I kept wondering where the money was to properly understand and incorporate so many different blockchains into the business.
For Ernst & Young (EY), adding a new chain to its blockchain analytics platform costs about $500,000, and keeping it up to date spends 10-20% of that on an annual basis. …read more
Mass Adoption of Web3 | The Future of Digital Assets: Datachain
This time, I would like to touch on the mass adoption in the financial field, which is the integration of decentralized finance and traditional finance, which is actually not discussed in detail in the context of web3.
From around the end of 2021, the word web3 has been seen more and more on various occasions, but I feel that there are many references to crypto assets and NFTs, especially in Japan. …read more
Why Yugalabo’s entry into Bitcoin NFT is important
It could not be more exciting for Bitcoin.
Yuga Labs, the company behind the popular NFT collection “Bored Ape Yacht Club” with a valuation of $4 billion (approx. 2.2 billion yen) profit. …read more
Evaluating Bitcoin as a ‘store of value’
FAQ. Is Bitcoin (BTC) a “store of value”? Those in favor will answer “YES” without hesitation. But skeptics point to big declines in the past. That is correct.
In November 2021, Bitcoin climbed to around $65,000, compared to around $25,000 now, just a week ago it was around $20,000. …read more
The banking crisis is not crypto’s fault
Silvergate Bank, which has total assets of 12 billion dollars (approximately 1.62 trillion yen, converted to 135 yen to the dollar), announced voluntary liquidation on March 8. Silicon Valley Bank, which has total assets of $200 billion (approximately ¥27 trillion), was transferred to the US Federal Deposit Insurance Corporation (FDIC) on the 10th. Signature Bank, with total assets of $100 billion, was shut down by the New York State Department of Financial Services (NYDFS) on Wednesday. …read more
｜Text and editing: coindesk JAPAN editorial department
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