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$779,000,000,000 Asset Manager Touts Bitcoin and Crypto, Says ‘Future of Banking Has No Banks’

Most Dogecoin Holders Are in Profit While Majority of Shiba Inu Owners Remain Underwater: IntoTheBlock

A financial giant with nearly $800 billion in assets under management is placing Bitcoin (BTC) and crypto in the spotlight amid the crisis in the US banking sector.

An AllianceBernstein report circulated by former Coinbase CTO Balaji Srinivasan says bank account holders of all sizes are now dealing with a novel risk after the high-profile collapse of Silicon Valley Bank (SVB).

The firm says people now realize the dangers of hyper-speed bank runs that can be magnified by social media and instant payment systems.

And even if the Federal Reserve is willing to step in and provide liquidity to troubled banks, the report says depositors have good reason to look for other options.

“The inconvenience of dealing with a bank failure and obtaining your funds with a lag just does not work for depositors, particularly business depositors.”

AllianceBernstein says Bitcoin and crypto could serve as alternatives to the traditional banking system, especially amid further banking crises and money printing from the Fed.

“We argue that smart contract based decentralized finance systems would suddenly appear as built for this world. Instant liquidation of positions without any lag, do-it-yourself (DIY) risk vaults on the blockchain, deposit stablecoins for revenue-based yields from financial protocols, in our view will become the new-age DIY bank accounts; way more customized, intelligent and real time, leading to more freedom and financial independence for the young users of tomorrow. 

The future of banking has no banks.” 

The firm notes that crypto’s price volatility is the largest obstacle toward its adoption as a viable long-term alternative to traditional banking.

“Bitcoin as digital bearer asset may not immediately appeal to customers who view stability in USD terms. But as we head towards another pivotal moment in monetary history, savers would also watch for not just stability in nominal value, but if any further accidents forces the Fed to breach again the ‘real value’ of the government currency, which many Bitcoin believers have suggested as the final path to hyper-Bitcoinization.”  

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