Crypto asset market, medium- to long-term outlook upward due to turmoil in the US banking industry: Coinbase | coindesk JAPAN | Coindesk Japan

Coinbase said in a March 17 report that the medium- to long-term outlook for the cryptocurrency market has been “upwardly strengthened” following the recent turmoil in the American banking industry. .

“Crypto-assets have shown some resilience, partly for technical reasons,” but more people are embracing the “basic value proposition of having an alternative to the points of failure inherent in the traditional financial system.” We started to appreciate it,” said David Duong, head of institutional investor research.

The Federal Reserve’s (Fed) interest rate hike policy has led to a decline in the price of government bonds and reduced the value of bank portfolios. The subsequent failures of Silvergate Bank, Silicon Valley Bank and Signature Bank caused panic in financial markets, sending bank stocks crashing in global markets.

The technology behind open blockchains and transparent smart contracts “stands in contrast to the disruptive risk management failures witnessed in the U.S. banking sector this week,” the report said.

This provides an argument in favor of crypto-assets as an alternative and a viable solution to the “points of failure witnessed in the existing financial system,” the report added.

However, the operating environment for cryptocurrency businesses may become more difficult in the short term due to the loss of some fiat currency settlement rails.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: ShutterStock
｜Original: Cryptocurrency Outlook Is Strengthened by US Banking Turmoil: Coinbase