Simply Bitcoin: How they Plan to Use Banking Collapse to Attack Bitcoin
The banking sector has been on a wild ride. The second and third largest bank failures in history occurred in the past week, as regulators shut down Silicon Valley Bank and Signature Bank.
Regional banks saw a massive selloff – and subsequent bounce later in the week as tensions cooled. However, it’s clear that the banking system is under pressure. And these two banks were heavily invested in cryptocurrency products.
One director at Signature Bank, former Congressman Barney Frank, knows a thing or two about the banking system. And he stated that the decision to shut down Signature was, in part, a way for the government to attack cryptocurrency.
Ironically, the first cryptocurrency, bitcoin, was created during the last banking panic. As a decentralized, peer-to-peer payment system, bitcoin was designed to avoid having your money held hostage in the banking system. That may be why bitcoin soared as investors moved their money out of banks.
However, bitcoin and cryptos in general are under pressure. And with talk of governments creating their own central bank digital currency (CBDC), it’s clear that the issues in the banking system could also be used to attack this new asset class.
That could mean more restrictions on the use of purchase of cryptocurrencies. Or it could mean attempts to outright ban their use. But such bans are likely to fail.
