SVB's Collapse Exposes Deep Issues in U.S. Banking and Regulatory Oversight.
The recent collapses of Silicon Valley Bank, Silvergate, and Signature have exposed the risks behind fractional-reserve banking and the confusing nature of the US dollar. Banks often only keep a fraction of their deposits on hand, leading to bank runs when customers try to withdraw their funds. Businesses often lend their money directly to the US government instead of putting it in a bank, as it is safer. An asset-backed currency could be designed not to dilute and be independent of governments, with no mandate other than maintaining value. Cryptocurrency done right is actually less risky than a Main Street bank.