$779,000,000,000 Asset Manager Asks for Bitcoin and Crypto, Says “Future of Banking Has No Banks”
A financial giant with nearly $800 billion in assets under management is putting Bitcoin (BTC) and crypto in the spotlight amid the crisis in the US banking sector.
An AllianceBernstein report circulated by former Coinbase CTO Balaji Srinivasan says bank account holders of all sizes are now dealing with a new risk following the high-profile collapse of Silicon Valley Bank (SVB).
The company says people are now realizing the dangers of high-speed bank runs that can be magnified by social media and instant payment systems.
And even if the Federal Reserve is willing to step in and provide liquidity to troubled banks, the report says depositors have good reason to look for other options.
“The inconvenience of dealing with a bank failure and getting your money in arrears just doesn’t work for depositors, especially business depositors.”
AllianceBernstein says Bitcoin and crypto can serve as alternatives to the traditional banking system, especially amid further banking crises and Fed money printing.
“We argue that smart contract-based decentralized financial systems will suddenly appear built for this world. Instant liquidation of positions with no lag, do-it-yourself (DIY) risk vaults on the blockchain, deposits of stable coins for income-based returns from financial protocols, will our vision become the new age DIY bank accounts; much more customized, intelligent and real-time, leading to more freedom and financial independence for tomorrow’s young users.
The bank’s future has no banks.”
The firm notes that crypto’s price volatility is the biggest obstacle to its adoption as a viable long-term alternative to traditional banking.
“Bitcoin as a digital asset may not immediately appeal to customers who look to stability in USD terms. But as we move towards another pivotal moment in monetary history, savers will also be looking for not only stability in nominal value, but if further calamities forcing the Fed to break again the ‘real value’ of the government currency, which many Bitcoin believers have. proposed as the last path to hyper-Bitcoinization.”
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