This Thursday, it remains lto stock market tension despite the life jacket Swiss credit which agreed to request about US$54 billion from the Swiss National Banksince the fall of Silicon Valley Bankof the Silverbank and of the Signature Bank of New Yorkfilled investors with concern.
In this sense, PROFILE consulted the financial lawyer Carlos Maslatónwho commented on the cryptocurrency rallythe reasons of the bank’s fall, its future and the projects being carried out by the world’s central banks on digital currencies (Central Bank Digital Currency or CBDC, for its acronym in English).
According to the look of the liberal referent, during the last days there have been signs “very surprising”given what he considers the decision of the United States Federal Reserve (Fed) to close the three banks, since he estimates that none of them were in “critical” condition for a determination of such magnitude.
Cryptocurrencies are attractive again amid financial turmoil
“In the last few days, there have been very, very surprising signs. The last weekend, the Federal Reserve closes the three main banks through which the operations that implied a change from dollar to bitcoin or vice versa were channeled,” said the lawyer in dialogue with PROFILE.
As Maslaton explained, the three banks closed by the Fed had the account of all the companies that traded bitcoin “and they had created a kind of compensation fund where those firms paid each other through wallets developed by those banks”.
He added: “What the Fed determined, to me, is to block the possibility of funding bitcoins with new money. This has overturned the three banks alleging problems or systemic risks, exaggerated in my opinion, and limited the inflow of funds to buy bitcoins. It leaves you a small outlet to sell if you want to exchange BTC for dollars, but the reverse operation is the one that is affected by these bank closures.”
What does this mean?
According to the liberal referent, with the decision of the Federal Reserve, a determination that he called a “political move” to impose CBDCs, bitcoin should have fallen hard, but the opposite happened. She shot up setting up a flight to quallity which is when investors, faced with the risks demonstrated by the financial system, move to safer assetsthis time they considered the crypto market.
Thus, the cryptocurrency market is bypassing the financial crisis unleashed in the United States that affects equity markets. In this regard, Maslatón said: “Unlike other situations in which bitcoin accompanied a general market decline, this time the opposite signals were given. It is the first time in the entire history of BTC that we are seeing that functions as a refuge of value. He is giving different signals. Expressly in contradiction with the banking sector”.
According to the reading of the expert consulted by PROFILE, these are encouraging signs for the crypto market and they are closely related to the Fed’s plans regarding monetary policy and the rise in interest rates.
What will happen to traditional banking?
“It is very interesting what is happening. Governments are working on projects to establish Central Bank cryptocurrencies. If this were to be implemented, it would be the cancellation of all paper money in circulation, which would mean that banking as such would no longer make sense to exist”, Maslaton pointed out.
What the lawyer is referring to is CBDCs, that they are the attempt by central banks around the world to maintain power over the business of monetary policy. After the crypto boom, there was no choice but to replicate its operation, but in a “centralized” way.
CBDCs: the currency with which governments seek to beat cryptocurrencies
In this regard, Maslatón highlighted some problems. The most relevant of them is that “would allow the State to project the economy and regulate people’s lives as it has never done before, because these currencies that they seek to develop, unlike bitcoin where it is not known who is carrying out the transaction, the CBDCs will be fully nominated and the State will know in detail the movement of the person. Much more than you now know”.
And he slipped his theory: “A large component of the current banking fall could become this. Quietly, that banking lose sense by virtue of these projects, which may be five or ten years away from being implemented. We already know what the market is like, that it anticipates things that have not yet happened”.
Will there be a financial crisis like the one in 2008?
Finally, the liberal referent ruled out a financial crisis like the one in 2008 noting: “My answer is no. decidedly not. There may be corrections in the general economy, in the stock price, but We are not facing an event of such magnitude. It will be a minor correction, but nothing to do with that of 2008-2009”.
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