• Charles Hoskinson, the founder of Cardano, recently urged for crypto to de-risk itself from banks amid ongoing crisis.
• This came after US regulators specifically targeted crypto-friendly banks and their actions had potential implications for the crypto industry.
• Despite facing challenges from regulators, cryptocurrency continues to grow as a result of its resilience and demand for decentralised alternatives.
Crypto Needs to De-risk
Charles Hoskinson, the founder of Cardano, has recently called for crypto to break free from unstable and volatile banks in order to de-risk itself amid the ongoing crisis. The call comes as many speculate that US regulators have been targeting crypto-friendly banks.
Cryptocurrency Market Showing Resilience
Despite all this, the cryptocurrency market has shown strong resilience with Bitcoin and altcoins delivering a strong rally. Bitcoin’s surge past $25,000 has got everyone talking about BTC emerging as a beacon of hope when traditional systems are failing. Not only Bitcoin but other altcoins are doing extremely well too.
Banks at Risk of Digitising Securities
Responding to these recent developments in a tweet earlier today (March 15th), Hoskinson said that it’s about time that crypto breaks free from the unstable and volatile banks adding that banks would suffer the moment we digitize securities.
Challenges Re-Establishing Crypto Connections with Banks
However, it’s easier said than done considering crypto is facing challenges in re-establishing its connection with the banking system. Several crypto companies have reported that it’s getting much tougher to find banks willing to offer services to crypto firms due to increasing regulation on digital assets by governments worldwide.
Growing Demand for Decentralized Systems
The growing demand for decentralized systems is helping cryptocurrencies continue to grow despite all odds they face from regulators over the years. As traditional financial systems fail to deliver, there’s an increasing push towards decentralized alternatives which will reduce an individual’s reliance on centralized authorities such as banks or governments while also providing more control over their money and investments