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0 pointsFabHK3y ago0 comments

That's funny.

The USD is entirely unaffected. Some deposits at certain banks are affected for large (mostly professional) holders. Retail investors will be made whole (up to 250k), thanks to this banking regulation thingy you might have heard of.

USDC is meant to mirror the USD (sure, with its concomitant FX and inflation risk), but it is certainly not meant to introduce credit risk vis-à-vis some bank most people hadn't heard of last week.

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hailwren3y ago

You’re aware that ~$150B of $200B SVB deposits are not covered by FDIC insurance, correct? I don’t think SVB is going to end up 0, but pointing at 25% of investments being safe and saying “look regulation works so well” seems absurd.

lukeschlather3y ago

All the people involved are institutional investors. 0% of people who have USD savings under $250k are affected by this. On the other hand, anybody who has a significant portion of their net worth tied up in cryptocurrency is affected by this.

1010113y ago

Minor correction, people employed by companies that banked with SVB are also heavily affected here.

FabHKOP3y ago

Indeed, if your company is in the banking business without understanding the banking business, you might have a surprise coming up. As in most other industries.

johnmaguire3y ago

... and all the people and companies those companies banking with SVB have to pay?

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