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FDIC Seals up Banks in Silicon Valley: Digital Assets Should Not be Held by Banks

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According to reports, Gabor Gurbacs, director of digital asset strategy of VanEck, an investment management company in New York, said on social media that FDIC…

FDIC Seals up Banks in Silicon Valley: Digital Assets Should Not be Held by Banks

According to reports, Gabor Gurbacs, director of digital asset strategy of VanEck, an investment management company in New York, said on social media that FDIC had sealed up banks in Silicon Valley and controlled their deposits. Regulators should not promote the custody of digital assets by banks in the future. Hundreds of billions of dollars of banks go bankrupt and swing more than 10-30% in a few days, which will not inspire people’s confidence in the system.

Gabor Gurbacs: Regulators should not promote banks’ custody of digital assets in the future

Analysis based on this information:


The director of digital asset strategy of VanEck, Gabor Gurbacs, recently made a statement on social media that caught the attention of investors and regulators alike. According to reports, he claimed that banks in Silicon Valley had been sealed up by the Federal Deposit Insurance Corporation (FDIC) and that their deposits were being controlled. This has raised concerns about the role of banks in the safekeeping of digital assets.

Gurbacs argued that regulators should not promote the custody of digital assets by banks in the future. He pointed out that hundreds of billions of dollars of banks go bankrupt and swing more than 10-30% in a few days, which will not inspire people’s confidence in the system. This comment highlights the volatility of the digital asset market and the potential risks associated with it.

It is clear that Gurbacs’ concerns stem from the fact that banks are not immune to bankruptcy, and depositors could lose their money if they were to invest in digital assets through traditional banking channels. Furthermore, the high level of risk associated with these assets means that banks may not have the expertise and knowledge required to properly manage them. This has raised concerns about the role of banks in the safekeeping and management of digital assets.

There is no denying that digital assets are a fast-growing and rapidly evolving market. The emergence of new technologies such as blockchain and cryptocurrencies has dramatically changed the way people invest and manage their assets. However, as Gurbacs pointed out, it is important for regulators to ensure that these assets are safeguarded in a manner that inspires public confidence.

In conclusion, while there is considerable debate about the role of banks in the management and custody of digital assets, the comments by Gabor Gurbacs are a timely reminder that regulators and industry stakeholders need to be proactive in ensuring that these assets are managed in a safe and secure manner. The lessons of past financial crises have taught us that maintaining public trust and confidence is crucial to the stability and resilience of the financial system.

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