Crypto Boss Cardano: Banking Model Is Very Fragile And Messing Up

Cardano founder Charles Hoskinson. (Photo; Doc. Arz Center)

JAKARTA - The banking industry is in crisis and various major banks have gone bankrupt, especially in the United States. In an interview with Fox Business, Input Output (IO) CEO Charles Hoskinson said he prefers to be a cryptocurrency expert rather than be a banker in his current condition.

According to Hoskinson, cryptocurrencies remain stable and persist despite last year's tough challenges. Even so, it cannot be said that the banking sector experienced the same thing this year.

Recently, First Republic Bank went bankrupt and was second largest in US banking history. After the tents carried out in a bid by the Federal Deposit Insurance Corporation (FDIC), buyers were not found for the bank. However, on May 1, JPMorgan took over a number of First Republic assets in a deal worth 10.6 billion US dollars (equivalent to Rp155 trillion) which was considered controversial by several parties.

Kobeissi Letter highlighted that rules regarding banking monopoly prevented JPMorgan from acquiring First Republic Bank, but the FDIC still approved the deal. In addition, JPMorgan has the potential to make a profit of 2.5 billion US dollars (Rp36.7 trillion) from this acquisition, plus the FDIC covered First Republic losses and provided additional loans worth 50 billion US dollars (Rp733 trillion) to the company.

Previously, JPMorgan CEO Jamie Dimon, who said the US banking system was very strong and the crisis was nearing its end, was not in line with the views of former BitMEX CEO Arthur Hayes. Hayes posted a screenshot of the stock performance of several US regional banks, saying that some of these banks would not last Monday if the Federal Reserve did not take drastic action.

In such a chaotic situation, Hoskinson mentioned that the banking model is very fragile and is in a "disorganized crash", thus making the cryptocurrency world a comfortable place to be in the midst of this chaos. According to him, "it's very nice to be in a cryptocurrency (space) where everything is simple and pure, and we can focus on building."

Hoskinson also highlighted that currently, the US authorities' strong views on cryptocurrencies have forced US crypto companies to focus their attention on overseas markets. However, he criticized the inconsistent approach taken by US regulators and mentioned that this is reality in his country.

Hoskinson stated, "we live in a Schroedinger paradox where we live and die at the same time. We are commodities and securities at the same time. Sometimes we become a currency, sometimes we become a point of loyalty."

Although the current world financial situation is still unstable, Hoskinson sees a bright future for cryptocurrencies. He believes that with global regulations improving outside the US, cryptocurrencies can experience positive developments.