In early 2023, the finance system experienced its worst disaster since the Great Recession of 2008.
Distrust in once-reliable institutions has increased due to the current financial disaster. The merger of UBS and Credit Suisse has only heightened public anxiety and skepticism about the financial sector. Silicon Valley Bank, First Republic Bank, and Deutsche Bank have all seen substantial customer transfers and media attention recently.
One of Wall Street’s most prominent investors and businessmen, Tim Draper, believes there is a straightforward approach to protecting oneself from potential harm.
“Draper told BeInCrypto that he advises all chief financial officers to store the equivalent of two payrolls in digital currency to safeguard against bank or government disasters. I still recommend Bitcoin as insurance against “bad governments with too many regulations” and “the current antiquated and over-regulated banking system.”
Investors have been fleeing to “too big to fail” banks as they become increasingly concerned about the future of lesser financial organizations. Unlike conventional banks, which rely on middlemen, DeFi allows anyone with an internet link to access its banking services, with all transactions documented on a public database. Some individuals have felt the positive effects of greater responsibility in recent weeks.
Draper told BeInCrypto that this would hasten the transition to cryptocurrency from the centralized financial system.
He said many people have been on the fence about buying Bitcoin, but the SVB collapse was a wake-up call for them. Keeping the railroads running on time is now imperative.
Both the rate of acceptance and the reasons behind it differ significantly between economically established and developing nations and between countries with secure and unpredictable currencies. The United Nations found that Venezuela had the third-highest usage of cryptocurrencies worldwide. It is ranked lower than both Russia and Ukraine.
Allowing institutions to take and trade in Bitcoin is the only way to avoid banking disasters. He warned that banks’ customer bases would dwindle if they didn’t adapt to the changing technological landscape.
Also Read: Congress Examines SEC Chair Gensler’s Crypto Policy Decisions
Wallets