FameEX Morning Crypto News Recap | March 20, 2023
Venezuela Revamps Its National Cryptocurrency Department
Venezuela's Sunacrip, the National Superintendency of Crypto Assets, will undergo a reorganization led by a new board headed by Anabel Pereira Fernández. Surprisingly, Joselit Ramirez, who previously led the department since its inception in 2018, has been excluded from the new team. It is unclear why Ramirez was left out. The move coincides with Venezuela's efforts to promote and regulate cryptocurrencies, including its own Petro digital currency, which is backed by the country's oil reserves.
Rising Interest in Crypto as US Banking Crisis of 2023 Unfolds
Marwan Ali, a crypto expert and trader, has stated that the recent collapse of Silicon Valley Bank (SVB) highlights the need for decentralized financial systems, which can offer more stability and security. Ali believes that the traditional banking system is fragile and unstable, and digital currencies such as Bitcoin can provide a viable alternative due to their decentralized structure, offering a level of security and resilience that traditional banking lacks.
Lawmaker in the US Calls on Government to Ensure Full Deposit Guarantees to Prevent Bank Runs on Smaller Institutions
Amid concerns over potential bank runs, a US congressman is advocating for the temporary provision of federal insurance to cover all bank deposits in the country. In light of recent major bank collapses, he argues that a failure to implement such measures could cause smaller banks to experience a wave of withdrawals. The congressman has warned that if a run on smaller banks were to occur, it could spread to the entire banking system, creating a contagion effect with disastrous economic consequences.
US Senator Demands Probe into Bank Failures, Blames Fed Chair Powell for Direct Responsibility
Senator Elizabeth Warren has requested an independent investigation into the failures of Signature Bank and Silicon Valley Bank, alleging that Federal Reserve Chairman Jerome Powell bears direct responsibility for regulatory and supervisory problems that contributed to their collapse. Warren's call for a thorough investigation is a reflection of the growing concern among lawmakers about the regulatory framework surrounding banks, particularly those dealing with complex financial products and services.
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