FT News Briefing Crypto bank’s ‘crisis of confidence’
Jan 6, 2023
In this discussion, the U.S. job market shows signs of slowing growth, stirring concerns about future Federal Reserve policies. The crypto bank Silvergate faces a massive withdrawal of $8.1 billion in deposits, reflecting a broader crisis of confidence in the crypto sector. Experts also delve into the heightened regulatory scrutiny of cryptocurrency following recent collapses. Additionally, the conversation touches on the waning relevance of traditional company phone numbers in an increasingly digital customer service landscape.
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Impact of Fed Rate Hikes
- The US jobs growth is slowing, suggesting that the Federal Reserve's interest rate hikes are working.
- However, the US economy remains strong, making it harder for the Fed to control inflation.
Silvergate's Crisis of Confidence
- Silvergate's share price dropped over 40% due to clients withdrawing $8 billion in deposits.
- This signals the crypto crisis expanding to mainstream finance as institutional clients pull money due to a, quote, crisis of confidence.
The Disappearing Phone Number
- Pilita Clark struggled to find a phone number for a business, highlighting a growing trend.
- Many companies have removed or hidden their phone numbers, prioritizing online communication.