Wenzel Orf

Crypto Leaders Speak Out: US Financial System Broken, Needs Disruption

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• Ripple CEO Brad Garlinghouse recently commented on the collapse of Silicon Valley Bank, which served as a banking partner for Ripple.
• Garlinghouse noted that despite the turmoil in traditional finance markets, Ripple remains in a strong position.
• Charles Hoskinson of Cardano criticized the US government’s unfair stance on crypto and Ripple’s General Counsel Stuart Alderoty praised US Representative Ro Khanna’s recommendations to increase FDIC premium payments.

Ripple CEO Points Out Broken Financial System

Ripple CEO Brad Garlinghouse took to Twitter recently to set the record straight regarding his blockchain company’s exposure to the now-defunct Silicon Valley Bank. At the time, Garlinghouse revealed that there was „some exposure to SVB,“ especially since it served as the banking partner for Ripple and held some of the firm’s cash balances. Despite the turmoil in United States banking system and broader traditional finance markets, he noted that „Ripple remains in a strong position.“ His statements were supported by popular crypto-lawyer John Deaton and Cardano founder Charles Hoskinson.

Government’s Unfair Stance on Crypto

Hoskinson recently pointed out the irony in the U.S. government’s unfair position on crypto where firms have been called risky for backing their stablecoins with cash and treasury bills, while traditional banking institutions have failed due to long-term TradFi bonds but blamed crypto instead.

Support from US Representative

Ripple’s General Counsel Stuart Alderoty lauded US Representative Ro Khanna’s efforts after he recommended an increase in premium payments by banks to Federal Deposit Insurance Corporation (FDIC) in order to protect depositors for payroll & regional banks and prevent consolidation of financial systems. Alderoty also called for a post-mortem of SVB’s collapse to determine accountability and address gaps in regulation of banks.

Crypto Remains Strong Amid Turmoil

Garlinghouse further pointed out that rumors and FUD led to collapse of banks and inability of firms to move around their own funds during this pandemic, highlighting plight of country’s financial systems but added that crypto remains strong amid this turmoil.

Conclusion

Despite issues faced by traditional finance due to COVID-19 crisis, blockchain technology is thriving more than ever with its solutions for payment networks like Ripple proving effective at modernizing United States‘ banking system both domestically and internationally.