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Analyst Warns About Traditional Banking System Turning on Itself

source-logo  coinedition.com 01 May 2023 12:30, UTC

Prominent crypto enthusiast Ben Armstrong, better known as BitBoy Crypto, took to Twitter to express his concerns about the direction in which the traditional banking system is headed. He warned that the system is turning on itself and allowing community banks to fail.

Sometimes I wonder if you guys really know what’s going on. The traditional banking system is turning on itself.

They are allowing community banks to fail because they want 3-4 major banks. That’s it.

It will be just like phone companies. 3 choices. No customer service.

— Ben Armstrong (@Bitboy_Crypto) April 30, 2023

In his tweet, Armstrong expressed his doubts about whether the public truly understands what is happening with the traditional banking system. He pointed out that traditional banking institutions are causing harm to themselves by allowing community banks to fail in order to create a consolidated market dominated by a few major banks.

Armstrong went on to compare the situation to that of the phone industry, “It will be just like phone companies. 3 choices. No customer service.”

One Twitter user responded to Armstrong’s tweet with skepticism, referencing an “old, concrete news” article from last March. The report says a group of 11 large U.S. banks had sent a combined $30 billion to shore up First Republic Bank following a pair of recent bank failures. In a statement, America’s largest banks, including JPMorgan Chase, Bank of America, Citigroup, etc., said, “This action reflects their [America’s largest banks] confidence in the First Republic and in banks of all sizes. Regional, midsize, and small banks are critical to the health and functioning of our financial system.”

Even so, Armstrong found support from other Twitter users who shared his concerns. One user commented, “It goes beyond that…There’s an alternative agenda. Global CBDC. ‘They’ [Banking systems] only want 1 Bank…”

Armstrong’s comments come at a time when the relationship between traditional banking institutions and the rapidly growing cryptocurrency industry has been the subject of much debate. In a recent YouTube video, Armstrong highlighted that banks involved with cryptocurrency are currently facing increased scrutiny.