The USDC Issuer Circle Reveals a Day of Panic:
I Couldn’t Withdraw $3.3 Billion from a Silicon Valley Bank!
Most of us have had a mini panic about our bank account, but imagine a whole day of it?
The USDC issuer Circle, who is the leader of cryptocurrency pegged to the US dollar, recently announced that they had experienced an inability to withdraw $3.3 billion from Silicon Valley Bank.
For one, Circle was expecting to receive $3.3 billion that they had put into the Silicon Valley Bank. However, when they went to try and make the withdrawal, they had difficulty doing so. According to their statement, the problem originated from “inconsistent compliance protocols”.
What Does This Mean?
Well, this is more than just a simple financial issue. It’s a message from Silicon Valley that banks are still not ready to fully embrace cryptocurrencies. Currently, the two industries are still far away from the common ground that could allow for a strong relationship.
What is Circle Doing Now?
As of now, Circle has announced that it is trying to come to a resolution with the Silicon Valley Bank. While the details of this solution remain to be seen, the big takeaway from this incident is that banks still aren’t comfortable with cryptocurrency.
Additionally, Circle has also mentioned that they are exploring “alternative avenues” to fund their balance sheet in order to maintain financial operations.
The incident proves that the financial industry is still learning and evolving. It’s a reminder that banks are not ready to fully embrace cryptocurrencies and that the common ground between banks and cryptocurrencies still has some time to be achieved.
We can only hope that this incident provides a wakeup call for banks to increase their security measures and get comfortable with cryptocurrency. Until then, let’s try not to have any days of mini panic!
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