In a podcast on March 20, Cardano founder Charles Hoskinson made some interesting remarks about Credit Suisse and the current state of the banking sector. Hoskinson pointed out the irony of Credit Suisse’s current troubles and its disapproving attitude towards cryptocurrency and him personally, nine years ago.

Hoskinson noted that Credit Suisse had dismissed the idea of cryptocurrency as too dangerous and unstable, claiming that it would harm its reputation. However, recent events have proven that the traditional banking system is not immune to instability and reputational damage.

The Cardano founder’s comments come in the wake of Credit Suisse’s recent losses and scandals, including its involvement in the collapse of Greensill Capital and the implosion of the Archegos Capital Management hedge fund. These events have raised serious questions about Credit Suisse’s risk management practices and have led to a significant decline in the bank’s stock price.

Hoskinson’s comments also highlight the growing acceptance of cryptocurrency and blockchain technology in the financial sector. Despite early skepticism and caution from traditional financial institutions, many banks and financial firms are now exploring the potential of these new technologies. In fact, UBS, one of Credit Suisse’s main competitors, has reportedly been investing heavily in blockchain technology and is now considering offering cryptocurrency trading services to its clients.

The irony of Credit Suisse’s current troubles and its past dismissal of cryptocurrency is not lost on Hoskinson or the broader crypto community. As the traditional banking system continues to face challenges and disruptions, it seems likely that cryptocurrency and blockchain technology will play an increasingly important role in shaping the future of finance.

In conclusion, Charles Hoskinson’s comments about Credit Suisse and the banking sector’s current state of affairs are a reminder of the importance of innovation and adaptation in a rapidly changing world. While traditional institutions may be hesitant to embrace new technologies, the crypto community is forging ahead and making its mark on the future of finance.

#Cardano #Hoskinson #ADA #CreditSuisse #azcoinnews

This article was republished from azcoinnews.com

The Federal Reserve Vice Chair for Supervision, Michael Barr, will also attend the bearing as a witness.

The House Financial Services Committee intends to get to the depths of the failure of Silicon Valley Bank and Signature Bank.

Crypto is not expected to take any heat for the failure of these banks as the NYDFS earlier this week already denied the relation of crypto with the shuttering of the banks.

The banking crisis in the United States is seemingly coming to an end as regulatory bodies are engaging in finding out the reason behind the failure of banks. In line with the same, the US House Financial Services Committee took a step ahead in figuring out the actual cause.

Why Silicon Valley Bank collapsed, to be found out

In an announcement on Friday, the Financial Services Committee announced that it would be beginning a bipartisan hearing with Financial regulators. Announced by the Chairman of the House FSC, Patrick McHenry (NC-10), and the Ranking Member, Maxine Waters, the hearing is set to take place on March 29 this year. 

In the hearing Martin. Gruenberg, Chairman Board of Directors (BAD) of the Federal Deposit Insurance Corporation (FDIC), as well as Michael S. Barr, Vice Chair for Supervision, Federal Reserve, would act as the witnesses.

Talking about the main purpose behind the hearing, McHenry and Waters noted,

"This hearing will allow us to begin to understand why and how these banks failed… We are working around the clock to deliver answers to the American people in order to protect depositors, promote the safety and soundness of America's banks, and strengthen our financial system. We will conduct this hearing without fear or favor to get the answers the American people deserve.

A clear reason behind why the crisis began would help in putting an end to the bank fails and also prevent another in the future, also minimizing its impact on the crypto market.

Michael Barr has been a part of the crypto regulation narrative as well. The VC for Supervision Federal Reserve was noted this week saying that,

"banks should take a careful and cautious approach to engaging in crypto-asset related activities and the crypto sector."

Such statements are expected to pin the blame for the banks' failure on their banks' exposure to the crypto market. However, the regulatory body that shuttered the Signature Bank had already ruled out the same two days ago.

The New York Department of Financial Services (NYDFS) claimed that the failure failed to provide reliable data caused the shutdown of the Signature bank and not crypto in any shape or form.

Defying the narrative further, the Blockchain Association also highlighted the rampant de-banking of crypto companies, which basically refers to account closures and refusal to open new accounts to crypto businesses.

Thus the crypto market is seemingly safe from taking any heat during the hearing.

#Binance #BTC #Fed #CreditSuisse #koinmilyoner