The Global Impact of the US Crisis - Fintech Weekly Weekend
Weekend Fintech Review: Will the US Banking Crisis Affect the World? The current situation poses a real threat, but it's essential to examine how it has affected individuals and what possible outcomes might emerge.
A Recap of Recent Events:
Silvergate announced voluntary liquidation on March 8, 2023. On March 10, 2023, Silicon Valley Bank ceased its operations, while on March 12, 2023, Signature Bank also shut down. Perspective from Fintech Weekly: As the week comes to a close, it's a good time to reflect and draw conclusions for the following week.
The ongoing crisis in US banks is primarily the result of actions taken by US regulators to combat inflation. Some measures, such as the closure of Signature, which was friendly towards cryptocurrencies, appear arbitrary.
Despite this, certain cryptocurrencies, such as USDT, are seen as safe havens.
It is no coincidence that investors prefer certain cryptos over others. Cryptos that are viewed as more "institutional" make investors feel more secure.
This could lead to an increased emphasis on CBDCs in the future. We've noticed that all actions taken against the crypto space have been aimed at assets that are entirely outside of regulatory control.
A more robust regulatory response typically follows crises, and the current crisis bears a striking resemblance to the 2008 financial crisis, despite many experts denying it. We've identified at least three key similarities between the 2023 and 2008 crises.
Some experts fear that the crisis could lead to a panic that spreads globally. However, certain markets, such as China, as well as fin-tech industries in Africa and India, appear to have been only slightly impacted by the crisis and continue to attract investments.
Nevertheless, depositors and investors worldwide are at risk of losing their funds. Fintech and tech industries, in general, are global markets, and when institutions connected to these industries collapse, a domino effect is highly likely.
