Prominent economist Peter Schiff has blamed the worsening economic crisis on “too much government regulation” of banking institutions, media reports said. The recent collapse of several major banks in the United States has ignited discussions on the most effective ways to safeguard economies. Schiff states that increasing banking regulations could exacerbate the crisis.
After conducting a thorough analysis of Silicon Valley Bank (SVB), a team of economists has discovered that almost 190 banks in the United States are in danger of a collapse caused by depositors. According to Schiff, who believes that the monetary policies created by central banks can potentially harm long-term assets, such as government bonds and mortgages, these losses could be detrimental to banks.
Schiff compared the current situation to the financial crisis of 2008, which he believes was caused by “too much government regulation.” After the 2008 financial crash, the US government introduced new banking regulations, promising such an event would never happen again. However, Schiff believes this crisis will worsen due to excessive regulation.
Schiff’s concern for finding the right balance between regulations and banking institutions stems from his experience. In July 2022, Puerto Rico regulators shut Schiff’s bank down due to non-compliance. Despite this setback, many worldwide continue to see Bitcoin as a solution to financial freedom, with crypto entrepreneurs showing faith in its potential.
Coinbase’s former Chief Technology Officer, Balaji Srinivasan, is among those who remain bullish on Bitcoin’s future. He has predicted that Bitcoin will reach $1 million within 90 days. Srinivasan’s prediction is based on his belief that an impending crisis will cause the deflation of the US dollar, which will, in turn, drive up the BTC price.
This optimistic outlook on Bitcoin’s future comes amidst the economic instability in the US. Schiff believes that central banks’ monetary policies could spoil long-term assets such as mortgages and government bonds, potentially leading to bank losses. There are growing worries that about 190 banks in the US could face a collapse caused by depositors, as discovered by a recent analysis of Silicon Valley Bank (SVB) by a group of economists.
Despite the looming economic crisis, many people remain optimistic about the future of Bitcoin. Though bold, Srinivasan’s prediction is not the only one of its kind. Others in the crypto space have similarly bullish outlooks for BTC.