Former US Congressman Barney Frank called cryptocurrencies the main cause of the crisis in the US banking system, which began with the bankruptcy of the American Silicon Valley Bank (SVB), Bloomberg writes..

“A new and potentially destabilizing element is being introduced into the financial system — digital currency. What we get is a failure,” said Frank, commenting on the situation with the closure of SVB.

According to him, 2023 is fundamentally different from 2008: the financial system is less vulnerable than then. He added that although the crypto sector hurts the banking industry, it will not break it..

Against the backdrop of rumors about the bankruptcy of the first bank, the American crypto business almost immediately began to urgently cut ties with Silvergate. It was believed that Signature Bank became an alternative to Silvergate, but it also failed to cope with the crisis. Subsequently, SVB also faced problems, in which the reserves of many cryptocurrency companies were stored.

As a result, one of the largest stablecoins USD Coin (USDC) lost its peg to the US dollar and fell to $0.879, causing a panic in the market.. Note that at this moment USDC has stabilized and maintains a level of $1.

[see_also ids\u003d"

It was reported that global financial markets from New York to Japan “lost” $465 billion in two days, losing their market value due to investor fears amid the bankruptcy of SVB Bank, which actually went bankrupt in a few days..