3min chapter

Crypto Critics' Corner cover image

Silvergategate: The Collapse of Silvergate and the Future of Cryptocurrency Banking

Crypto Critics' Corner

CHAPTER

What Happens to Cryptocurrency in the US?

The curious question here is what happens to banking in the US for cryptocurrency companies and, uh, these middlemen. I think so far it seems like Coinbase has been fine. They have a lot of VC capital. Maybe the government is cooler, cooler with them than most of these. It does seem like a lot of these other companies are like super struggling because all of their banking partners are not dealing with cryptocurrency anymore. And I don't knowWhat we're headed for when it comes to this stuff.

00:00
Speaker 2
And I mean, largely, like what you're talking about, there's, it's a lot like shadow banking in that regard, right? Where you've got entities set up in two different places, you mark that transactions have occurred between them, but you don't necessarily settle between the two entities very regularly, because when the money actually moves is when you get caught is when you run into the capital controls is when you run into the money laundering police is when you run into whatever. And so like, that's how, um, it's how this system for effectively kind of remittances works, but it's also how like shadow banking between like China and Australia for, uh, Chinese nationals living like in Australia works or in Vancouver or anything like that. It's that same kind of
Speaker 1
system. Right. Right. It's, it's about, um, keeping liquidity in the system without, like, without having to deal with banking laws and regulators. It's, it's, yeah, it's, uh, it's a life hack. Um, but anyway, uh, yeah, I, I, I think the, the curious question here is what happens? What happens to banking in the US for cryptocurrency companies and, uh, these middlemen, essentially these exchanges, et cetera. Right. I think so far it seems like Coinbase has been fine. Uh, a good bonus for them today was that the US government moved a bunch of coins onto Coinbase. So it seems like they
Speaker 2
didn't actually move. I can't, I looked at those transactions. I don't think most of them actually went to Coinbase, like Glass node indicated 9000 or whatever, but that actually went to an address that then sent along a much smaller amount, like a hundred grand or something worth of Bitcoin to Coinbase. And most of the rest went out in 98 Bitcoin chunks to a whole bunch of new addresses, along with a couple of other weird amounts to, uh, other exchanges and stuff that were involved as part of that. Um, Protos had some reporting on that earlier today. If anyone wants to check on the details for that, but yeah, most of it actually didn't seem to go to Coinbase unless it was like Coinbase custody and Coinbase was helping them manage the coins. And that's why they were then split into like the, uh, equivalent chunks. I guess I'm, I'm
Speaker 1
just pointing out that it, of all the companies in the US that don't seem to have many banking issues at the moment, despite all of this craziness happening, it seems to be Coinbase. And I don't know what to think about that. I'm not like the world's biggest Coinbase fan. Um, so I, I don't know what to think of that other than, you know, they're publicly listed. They have a lot of VC capital. They've been around a long time. Maybe the government is cooler, cooler with them than most of these. I don't know. I don't know what to say about that. Um, but it does seem like a lot of these other companies are like super struggling because all of their banking partners are not dealing with cryptocurrency anymore. And I don't know, like, I don't know what the, I don't know what happens next here. I don't know what we're headed for when it comes to this stuff.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode