TRON founder Justin Sun wants to bridge banking with crypto
Founder of the TRON network Justin Sun has offered financial support to anyone who builds “a reliable bank that can meet the needs of the crypto industry.”
In a March 12 Twitter thread, Justin Sun said the recent collapse of Silicon Valley Bank showed the “potential damage caused to many in the industry.”
Justin Sun open to bridging banking gap with crypto
Because of this, he is willing to work with anyone who builds “a robust banking infrastructure that bridges the gap between traditional finance and crypto.”
Huobi’s global advisor also noted that this bank could be developed locally or abroad. He added that this institution would be central to enabling wider crypto adoption.
Binance CEO Speculates on Crypto-Friendly Bank Collapse
Binance CEO Changpeng ‘CZ’ Zhao speculated that the recent collapse of crypto-friendly banks could be a coordinated effort by the government. In recent weeks, crypto-friendly institutions such as Silvergate and SVB have collapsed.
Zhao’s speculation is a common sight among several stakeholders in the crypto community. Community members also likened the latest wave of increased scrutiny to “Operation Choke Point 2.0.” This is a reference to President Obama’s “Operation Choke Point”.
At the time, the US Department of Justice made it difficult for unscrupulous businesses such as arms suppliers to do business with traditional banks. As a result, the financial firms servicing these businesses faced obstacles and penalties.
Venture capitalist Nic Carter wrote that recent events showed a government-led effort to discourage traditional financial institutions from serving the crypto industry. Carter also added that regulators clarified that “touching public blockchains in any way is considered unacceptably risky.”
Meanwhile, four US lawmakers have questioned US financial regulators’ recent regulatory moves targeting the crypto industry. According to the lawmakers, this excessive behavior can bleed into other legal sectors.
Are Banks Risking Fiat-Backed Stablecoin?
Several crypto stakeholders have claimed that banks threaten the crypto industry. Changpeng Zhao claimed that banks were a risk to fiat-backed stablecoins. He also added that there was a need for more crypto-backed stablecoins.
Cardano founder Charles Hoskinson shared a similar view.
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Disclaimer
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