The banking crisis has now also crossed the Atlantic. Credit Suisse is one of the European banks that had to be forced to sell in order to retain some perspective. Cardano (ADA) founder Charles Hoskinson says he was banned from opening an account with the Swiss bank in 2014 because crypto was “too risky.”
‘Crypto too unstable’
In 2014, Hoskinson was the self-proclaimed CEO of Ethereum (ETH) before being kicked out. When he wanted to open a bank account with Credit Suisse, he was refused. The reason was that cryptocurrencies were too dangerous and unstable to work with. Hoskinson told this in his podcast on March 20.
“The people at Credit Suisse said, too dangerous, we can’t do that, it would be too unstable, terrible, we have a reputation to defend, we’re here for the long haul, we’ve been here 150 years, we can not embrace this crypto thing.” And now look, who will buy Credit Suisse – UBS – only if the Swiss government buys them out.”
UBS, that one Credit Suisse takes over, is a Swiss financial institution that is ironically crypto-friendly. In 2008, UBS was bought out by the Swiss government with tax money after heavy losses during the financial crisis.
Banking system is rattling
Hoskinson refers to the irony and hypocrisy of the current banking system. According to him, the current banking system is falling apart.
“The banking system is expected to fall apart because it has always been one ponzi used to be. They take other people’s money and multiply it out of thin air. Then they give it to people all over the world. As soon as things go a little wrong, they project the losses onto society. This has been happening in the banking sector for years.”
According to Hoskinson the recent bank closures are only the beginning of the banking crisis and it will not stop there.
“We are currently seeing the contagion effect of this system. From Silicon Valley Bank to Signature Bank to Credit Suisse, and it will continue.”
Although Credit Suisse has not yet closed its doors, investors have already lost confidence in the bank. The bank’s stock plunged nearly 70 percent.