$779,000,000,000 Wealth Manager Touts Bitcoin and Crypto Saying ‘The Future of Banking Has No Banks’
A financial giant with nearly $800 billion in assets under management is putting a spotlight on Bitcoin (BTC) and crypto amid the US banking sector crisis.
An AllianceBernstein report shared by former Coinbase CTO Balaji Srinivasan says bank account holders of all sizes are now facing a new type of risk in the wake of the highly publicized Silicon Valley Bank (SVB) collapse.
The firm says people are now realizing the dangers of hyperspeed bank runs, which can be amplified by social media and instant payment systems.
And even if the Federal Reserve is ready to step in and provide liquidity to struggling 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 delayed just doesn’t work for depositors, especially business depositors.”
According to AllianceBernstein, bitcoin and crypto could serve as alternatives to the traditional banking system, especially in light of more banking crises and the Fed printing money.
“We argue that smart contract-based decentralized finance systems would suddenly seem built for this world. Instant liquidation of positions without delay, do-it-yourself (DIY) risk vaults on the blockchain, depositing stablecoins for revenue-based returns from financial protocols are becoming the new-age DIY bank accounts in our view; much more customized, intelligent and real-time, leading to more freedom and financial independence for the young users of tomorrow.
The future of banking has no banks.”
The company 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 carrier may not immediately appeal to customers who see stability in USD. But as we head for another pivotal moment in monetary history, savers would be mindful not only of the stability of the face value, but also, should further accidents force the Fed to do so, the “real value” of the government currency held by many Bitcoin believers , to hurt again proposed as the last path to hyper-bitcoinization.”
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