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According to analysts at Bernstein Bank, the recent banking crisis has led to a run on funds from banks, and a repeat of the situation could be decisive for bitcoin.
In the week ending March 15, about $120 billion worth of deposits flowed from regional banks to larger banks. That surge eventually made its way to Europe, culminating in UBS’ March 19 acquisition of longtime rival Credit Suisse for a fraction of its value.
According to the company’s analyst Gautam Chhugani, banks are facing a new risk that they had not even considered before.
The fact is that while ultra-fast outflows are simply not available, but using instant payment systems, such as the FedNow platform launched later this year by the Federal Reserve, access to funds in financial institutions will be around the clock.
The new era of super-speedy deposit outflows brings unknown risks, but cryptocurrencies can help mitigate some of those risks.
As we approach another turning point in monetary history, savers too will be watching not only for nominal value stability, but also to ensure that other incidents do not cause the Fed to violate the real value of the national currency again,” Chhugani said.
And in these conditions, the advantages of decentralized financial systems based on smart contracts will suddenly turn out to be more relevant than ever.
As a result, experts say, banking will become more personal, intelligent and real-time, leading to greater financial independence for tomorrow’s users.
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