updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The FDIC and Fed are looking for ways the US government can guarantee all bank deposits amounting to $17 trillion should the financial turmoil worsen.
The US government is considering ways to guarantee bank deposits if the current banking crisis worsens. According to reports, the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve are exploring a potential guarantee of all US bank deposits. Officials from both parastatals embarked on this scheme on advice from a banking coalition that deemed it necessary to avert a financial crisis.
This development could also mean that the FDIC and Federal Reserve seek to guarantee the mammoth sum of $17 trillion in deposits. Both independent government agencies maintain that taxpayers should not pay for the ongoing banking crisis. However, the feasibility of the proposed bank deposit guarantee plan remains to be proven.
Treasury Department officials are reviewing federal regulators’ emergency authority to temporarily insure deposits higher than the current cap. This limitation is set at $250K and applies to most accounts. As it stands, the only way federal regulators can ensure deposits greater than $250,000 is with formal consent from an extremely divided legislature.
According to inside sources, authorities do not yet deem the move necessary. The reason is that regulators moved to assist banks in keeping up with withdrawal demands earlier this month. The ongoing agenda to guarantee bank deposits is a contingency measure should things spiral out of control.
White House spokesman Michael Kikukawa recently touched on the development. Without confirming or denying reports that a fiscal study is underway, Kikukawa explained:
“We will use the tools we have to support community banks. Since our administration and the regulators took decisive action last weekend, we have seen deposits stabilize at regional banks throughout the country and, in some cases, outflows have modestly reversed.”
However, government concern still abounds amid the call by midsize banks for more substantive intervention following the collapse of three banks. This month alone, Silicon Valley Bank (SVB) and Signature Bank declared bankruptcy after uninsured depositors withdrew their funds. In addition, a fourth bank, First Republic Bank, is struggling to stay afloat. First Republic’s shares tumbled 47% on Monday, underscoring a March stock drawdown above 90%.
However, as the embattled bank teeters on the brink, several big banks seek to redeem First republic. A coalition of banking giants led by JPMorgan (NYSE: JPM) has pledged $30 billion to prop up the San Francisco-based bank. In addition, this banking group is also devising a sustainable plan to ensure that First Republic remains solvent and operational. The JP Morgan-led banking coalition provided some insight into its rationale in a statement that read:
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities.”
Elsewhere, analysts believe that the banking crisis could trigger a suspension of rate hikes by the Federal Reserve.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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He then advised potential investors to properly do their homework on Bitcoin to have a good knowledge of it, suggesting anonymous Bitcoin creator, Satoshi Nakamoto’s white paper as a good read.
Scaramucci’s sentiments that getting to understand Bitcoin almost always leads to investing in it may not be far fetched however. Citing an example, he mentioned Ray Dalio, a well known Bitcoin skeptic turned Bitcoin investor.
He also mentioned other renowned investors like the American billionaire Stanley Druckenmiller and Paul Tudor who finally joined the trend by getting their own pieces of Bitcoin. In Scaramucci’s words, brilliant and prominent investors like these two guys would not decide on making such investments without doing their homework.
Scaramucci also added that Bitcoin has grown over 100,000% since it began in January 2009. Like he said, a person owning just one cent in Bitcoin and 99 cents in cash over the last decade, must have outperformed everything by now.
Scaramucci’s remarks come after Bitcoin hit a new all-time high of over $67,000 last week, albeit presently trading at $63,277. Recall that just one year ago, Bitcoin was trading at just about $13,000. But for the first time in its decade long history, On October 20, Bitcoin reached above $67,000.
The adoption is such a great one that cannot be over emphasized.
While Bitcoin has undoubtedly gained worldwide recognition, many are still skeptical about Bitcoin really getting the massive adoption, and that’s mainly because of the complex nature of its use.
Big names like major crypto industry investor Tim Draper, believe the main reason why Bitcoin hasn’t still been seeing the mass adoption is because its not easy to use.
Sometime last year, American billionaire entrepreneur Mark Cuban also put forward his opinion that Bitcoin needs to be easy enough that even a grandma can use it, before the mass adoption will take place.