Cathie Wood said that the ongoing crisis is a complete failure of the Fed policy and can be avoided with crypto’s decentralized solutions.
Cathie Wood, CEO of asset management firm Ark Invest, stated that cryptocurrencies act as a safe haven amid the ongoing bank crises in the United States. Wood attributed the recent collapse of Silicon Valley Bank (SVB), Signature and others to the policy failure of the Fed.
Wood Presents Crypto as a Solution
While the banking crises in the USA continued, the gains of Bitcoin (BTC), and Ethereum (ETH) increased the gains in crypto money prices to double digits.
Wood criticized the Fed’s failure to prevent bank collapses in a post on Twitter on March 16. Wood said he was surprised that banks and regulators failed to convince the Fed that disaster was imminent. Wood argued that the main responsible for the ongoing banking crisis due to the liquidity crisis is the FED Policy.
For banks, security gains were only 1-2 percent versus 3-5 percent deposits, which became untenable as deposits began to exit the system. Some banks, such as the SVB, had to sell their held-to-maturity securities and suffered huge losses.
Commenting further on the matter, Wood said that regulators are using crypto as a scapegoat for their own shortcomings in the oversight of traditional banking.
In the continuation of his speech, Wood stated that the current banking crisis will not be possible in a decentralized, transparent, auditable and overcollateralized crypto ecosystem.
With these statements, Cathie Wood presented crypto as a solution to the failures in the traditional financial system.
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