Justin Sun, who started the TRON network, has promised to help people build a reliable bank that can meet the needs of the cryptocurrency industry.
On March 12, Sun posted on Twitter that he was worried about the recent failure of Silicon Valley Bank and how it could hurt many people in the sector.
Justin Sun Aspires to Bridge Banking Gap With Crypto
So, he is willing to work with anyone to build a solid banking system that connects traditional finance with cryptocurrency. The Huobi global advisor also said that this bank could be set up anywhere. Furthermore, he stressed that this organisation would be critical in enabling the broader adoption of cryptocurrencies.
Recent incidents like the SVB situation highlight the potential harm caused to many in the industry. It’s time to build a reliable bank that can cater to the needs of the crypto industry. As a supporter of this ecosystem, I’m open to any idea that can help create such a bank.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
Meanwhile, Changpeng ‘CZ’ Zhao, the CEO of Binance, speculated that the recent bankruptcy of crypto-friendly banks might be a coordinated attempt by the authorities. Recently, crypto-friendly institutions, such as Silvergate and SVB, have collapsed.
Pure speculation. It almost feels like there is a coordinated effort to shutdown crypto friendly banks.
Banks are shut down.
Blockchains still running.
— CZ 🔶 Binance (@cz_binance) March 11, 2023
Zhao’s conjecture is widely held among many participants in the crypto community. People in the community have also compared the current wave of increased scrutiny to President Obama’s “Operation Choke Point,” calling it “Operation Choke Point 2.0.”
During that period, the U.S. Department of Justice created barriers and levied fines against traditional banks that conducted business with undesirable industries, such as firearms dealers. Consequently, financial institutions that worked with these industries encountered obstacles and penalties.
Nic Carter, a venture capitalist, said that recent events showed that the government was trying to stop traditional financial institutions from helping the crypto sector. Carter noted that regulators had made it clear that interacting with public blockchains in any way is deemed unacceptably risky.
In the meantime, four U.S. lawmakers are worried about the new regulations that U.S. financial regulators have put in place for the cryptocurrency industry. According to the lawmakers, this excessive behaviour could spill over into other legal fields.
Do Banks Threaten Fiat-Backed Stablecoin?
Several cryptocurrency investors have said that banks threaten the cryptocurrency industry. Changpeng Zhao claimed that banks posed a risk to stablecoins backed by fiat currencies and suggested the necessity for additional stablecoins backed by cryptocurrencies. Cardano’s creator, Charles Hoskinson, expressed the same point of view.