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Tyler Winklevoss, co-founder of the cryptocurrency exchange Gemini, recently took to Twitter to express his discontent with the US banking system.
In a series of tweets, the billionaire shared his views on the industry’s current state and criticized the government’s handling of the banking crisis.
According to Winklevoss, the US banking system is a “modern-day caste system” that favors the wealthy. He argues that the government has created a system that only covers deposits in banks deemed “too big to fail,” leaving other banks and their customers vulnerable to financial collapse.
Winklevoss explains that uninsured deposits of customers who bank with banking giants are essentially guaranteed by the US government, as these institutions are deemed “Systemically Important Financial Institutions” (SIFIs) or “Too Big to Fail.”
1/ The US banking system is a modern-day caste system. There are those who are banked by Bulge bracket banks. There are those who are banked by regional banks. And there are those who are banked by no bank at all.
— Tyler Winklevoss (@tyler) March 17, 2023
However, uninsured deposits of those who bank with regional banks may or may not be backstopped by the US government, depending on whether their failure would create financial contagion in the greater banking system. This determination is made by a supermajority of the FDIC board, a supermajority of the Fed Board, and the Secretary of the Treasury in consultation with the President. Essentially, there is no guarantee at all.
Winklevoss believes that the government’s handling of the situation is at fault. He argues that the state caused the banking crisis and failed to avert it, resulting in an unfair system that benefits only the wealthiest individuals.
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“The US government did a great job averting a banking crisis,” Winklevoss tweeted.
“Almost as great of a job as they did starting it.”
Cameron Winklevoss, Tyler’s twin brother and the other co-founder of Gemini, also shared his thoughts on the banking system. He suggests that the Federal Reserve’s recent growth of its balance sheet to rescue the banking system has given people more reasons to accumulate Bitcoin (BTC).
“The Fed just gave everyone $300 billion more reasons to buy Bitcoin,” Cameron tweeted.
The Fed just gave everyone $300 billion more reasons to buy bitcoin. pic.twitter.com/LnIjZtHRdb
— Cameron Winklevoss (@cameron) March 17, 2023
The Winklevoss twins have long been proponents of BTC and other cryptocurrencies. Their exchange, Gemini, allows customers to buy and sell cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The brothers have often criticized the traditional banking system, arguing that it is outdated and needs disruption. They believe that cryptocurrencies have the potential to revolutionize the financial industry and provide greater access to financial services for individuals around the world.