The International Monetary Fund and the G20 blame Cryptocurrencies for the collapse of Silicon Valley Bank. This scenario is already affecting cryptocurrencies globally.
Both the International Monetary Fund (IMF) and the Group of 20 (G20) claimed that cryptocurrencies were to blame for what happened to the financial system. To defend your argument, brought a document February that talks about the negative effects of cryptocurrencies on the financial system. According to this document, the widespread use of crypto-assets brings with it risks for the exchange rate and the flow of capital.
According to the IMF and the G20, cryptocurrencies pose a risk to world financial stability and security. Indeed, they warn that the collapse of Silicon Valley Bank was their fault and not the banking industry or other factors. The document, presented on Monday, warns of the instability of these assets, causing banks to lose deposits or reduce lending.
This is not the first time the International Monetary Fund has pointed the finger at cryptocurrencies.
BUT: Former FTX Leader 'Deeply Heartbroken' After Platform Bankruptcy
This situation even forced the US president, Joe Biden, to speak publicly, to try to calm the markets. However, SVB was unable to raise capital and return funds and deposits to companies and customers who chose this bank. And with just over 3 days after the collapse, we see the disaster spreading, there are already 3 bankrupt banks.
The collapse of the SVB touches on many areas all over the world. This was a bank whose shares were worth over $200 and nothing predicted or hinted that it could collapse in just a few days.
The consequences of its failure are more than clear: all the companies that had deposits in the bank are in serious trouble. Only 3% of deposits were insured and the amount the FDIC was willing to pay affected people was a maximum of $250.000.
The US is in the midst of a banking crisis following the collapse of SVB, not that the situation has changed following HSBC's takeover of the UK subsidiary. Incidentally, several branches of Silicon Valley Bank are being sold around the world, and there is even speculation that Elon Musk could be the buyer of SVB. But the target really seems to be cryptocurrency.
