Charles Hoskinson says the current banking model is collapsing, threatening a repeat of 2008

Charles Hoskinson, a person behind Cardano (ADA), has expressed concern that the failure of US banks this year might lead to a recurrence of the financial crisis of 2008.

In a recent interview with Fox Business, the creator of the smart contract platform asserts that the US banking paradigm is becoming obsolete as cryptocurrencies demonstrate resilience in the face of challenging macroeconomic conditions.

“The [cryptocurrency] markets are constant and reliable. Overall, we’ve been recovering since 2022 and the FTX crisis, and it will take a bit more time to clear up, but I’d rather be a crypto person right now than a financier. Crypto is acceptable, but institutions are not.”

Hoskinson asserts that the banking framework appears to be flawed, and he warns that the United States may face a similar financial crisis to the one it endured in 2008 as a result of bank failures. He observes that the failed banks in 2008 had a total of $373 billion in assets, while the failed banks in 2023 have a total of $540 billion in assets.

“What will occur is that ‘too huge to fail’ will result in larger institutions. This story was reported in 2008. This is the repeat. I believe nobody wishes to witness it.”

Hoskinson adds that the United States is falling behind other nations in implementing reasonable cryptocurrency regulations and risks losing crypto companies to foreign nations. He observes that the Markets in Crypto-Assets Regulation (MiCA), which governs crypto operations in the European Union, was recently approved by the European Parliament.

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