During the interview with Fox Business, the creator of the Cardano platform Charles Hoskinson spoke about the financial situation of the United States. This year’s US banking crisis could lead to a repeat of the 2008 financial crisis, he said.
The banking crisis can cause a serious economic crisis
Charles Hoskinson thinks that the banking model is broken in the United States. According to him, this whole business model breaks down when the state gives it a hand. And the state loses these institutions as is the case of the Silicon Valley Bank. Moreover, they become politicized and so globalized.
Following those bank meltdowns (resulting in a banking crisis), Hoskinson warns that the United States could face the same financial crisis as that of 2008. A crisis which was also caused by the failure of the banks.
“Banks that failed in 2008 had combined assets of $373 billion, while banks that have failed so far have combined assets of $540 billion. However, we are still in the midst of a crisis or even at its beginning”he explained during his interview.
The United States is behind on adopting crypto regulations
During his interview, the creator of Cardano also mentioned an important point: the United States is lagging behind other regions of the world in the adoption of crypto regulations. Indeed, Europe has already taken a step forward by approving the Regulation on Crypto-asset Markets (MiCA). Asians are also no slouch when it comes to crypto regulations. Even the global cryptocurrency regulatory environment is improving.
The United States thus runs the risk of losing crypto companies to other foreign countries. According to Hoskinson, crypto companies will focus overseas if uncertainty in the United States continues. And this to the detriment of national security and the US economy as a whole.
Will the 2008 crisis happen again in the United States? How will the authority do to avoid this crisis? Is cryptocurrency the ideal solution to avoid this crisis?
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