Cardano founder Charles Hoskinson fears this year’s banking crisis could turn into a repeat of the 2008 financial crisis. new interview with Fox Business, the smart contract platform developer says the banking industry appears to be breaking as the crypto market shows its resilience.
Is this the moment of crypto’s big breakthrough?
The banking model is broken
At the moment, Hoskinson is mainly afraid of a repeat of 2008. Where the failed banks at the time had a value of USD 373 billion, it is now already an amount of USD 540 billion in 2023. We must of course add that the inflation also plays a role in inflating the number in 2023.
“In 2008, we had $373 billion in assets. I think we’re already over $540 billion. But we’ve only just begun. The whole business model is crumbling. They just need a little push and they fall over,” said Hoskinson, referring to Silicon Valley Bank.
“What will happen is that the too big to fail banks are getting bigger. We saw this story in 2008 and this is the replay. I don’t think anyone wants that,” he continues. In addition to all this misery, the crypto industry currently seems to be a beacon of calm, according to Hoskinson.
America is falling behind
Furthermore, Hoskinson sees that the United States is falling behind compared to other jurisdictions when it comes to laws and regulations. As a result, many companies may choose to relocate to other areas of the world where there is a friendly regulatory environment.
He points, among other things, to the European Union, which adopted new rules for the industry with the Markets in Crypto-Assets Regulation (MiCA). “People move on. The Europeans continue with MiCA. Asia continues and in general the rules are getting better and clearer around the world,” said an optimistic Hoskinson.