In Light Of Present Crisis, Cardano's Charles Hoskinson Advocates Leaving Banks As A Way To De-Risk Cryptocurrency.

With Bitcoin and other altcoins providing a robust bounce, the cryptocurrency sector has demonstrated significant resistance to the recent banking crisis. Everyone is talking about Bitcoin (BTC) emerging as a symbol of optimism when conventional systems fail as a result of its recent run beyond $25,000 USD.

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Other cryptocurrencies than Bitcoin are also performing quite well. Veteran members of the crypto business have responded to the most recent developments. Cardano founder Charles Hoskinson stated that cryptocurrency needs to de-risk itself from such "unstable and volatile banks" in a tweet earlier today, March 15.

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During the past week, US regulators increased their pressure on institutions that support cryptocurrencies. The Fed and the FDIC intervened shortly after the Silicon Valley Bank crisis and announced the closure of the Signature Bank. The token market, the crypto sector, and stablecoins may all be affected if these institutions choose not to provide crypto-friendly services.

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In the bitcoin business, some optimists think that ultimately digital assets will take the place of conventional institutions. Yet given that cryptocurrency is having trouble re-connecting to the financial system, it's easier said than done. Some cryptocurrency businesses have claimed that finding banks willing to work with them is becoming increasingly difficult.

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Hoskinson's remark prompted one user to emphasize the necessity of decentralized banks. The creator of Cardano responded to it by saying:

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Banks will be out of a job the instant we can digitize Treasury securities.

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Cryptocurrency is still expanding despite the odds.

During the past few years, regulators have attacked and rebuffed the cryptocurrency industry, yet despite all the difficulties, it has grown. Decentralized financial systems are increasingly in demand as traditional ones fall short of expectations..

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These decentralized options will lessen any reliance on conventional banks, but it's still too early to entirely abandon conventional market participants. Binance CEO Changpeng Zhao even contemplated purchasing banks to avoid this banking conflict. Zhao stated the following in an interview with Trade Algo that he conducted at the Web Summit in Lisbon in November of last year:

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Individuals with specific local licenses, traditional banks, payment-service providers, even banks, exist. We are considering those factors.

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He added that buying a bank was a wise move because the cryptocurrency economy still heavily relies on fiat liquidity. It won't be simple to get away from regulators in this situation, either. Zhao's request has not yet been acted upon by Binance.

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Many have speculated that the regulators' decision to shut down Signature Bank is part of a concerted assault on institutions that support cryptocurrencies. A representative for the NYDFS claimed it was untrue. Despite crypto being a small portion of its business, Signature Bank failed to deliver "accurate and consistent statistics, creating a serious crisis of confidence in the bank's leadership".

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