Catherine Wood blamed regulators for not taking timely action to prevent a banking crisis. The instability of the banking system threatens stablecoins, and this can become a springboard to decentralized finance (DeFi), which contrasts sharply with the rhetoric of regulators, Wood said. While the US banking system has gone numb, bitcoin, ether and other cryptocurrencies have not lost their rhythm, says the CEO. On the contrary, on Tuesday, March 14, Bitcoin rose above $26,300, while Ethereum rose to $1,780.
Instead of pursuing transparent and well-functioning decentralized platforms, Wood said regulators should focus on the centralized and opaque ones that teem with the traditional banking system. Wood believes that regulators should have dealt with the crisis, which has long “loomed on the horizon” in plain sight.
Instead of blocking decentralized, transparent, auditable and well-functioning financial platforms with no central points of failure, regulators should have been focused on the centralized and opaque points of failure looming in the traditional banking system.
— Cathie Wood (@CathieDWood) March 15, 2023
We are talking about the discrepancy between the assets and debt obligations of banks, which caused difficulties for credit institutions. Short-term interest rates have risen 19 times in less than a year, and deposits in the banking system have declined year-on-year for the first time since the 1920s, Wood said.
Recently, the founder of ARK Invest called bitcoin the only hedge against inflation and the depreciation of fiat currencies.
Source: Bits
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