Opinion | Cryptocurrency Contagion Has Yet To Spread To The Broader Financial System



In spite of cryptocurrencies being advertised as a revolution for payment technology, and a way to transform the current system, its influence has been surprisingly minimal.

This is especially disheartening for those who invested in cryptocurrency, only to watch its value plummet. It’s It is a tragedy that these individuals are having to face. But Fortunately, it is not a contagion.

In early November, when FTX cryptocurrency exchange suddenly had to declare bankruptcy, Jeremy Allaire, founder and CEO of Circle, called it a “Lehman Brothers moment.” It It was clear that the world of cryptocurrency exists in its own sphere. Each Every day brings more and more disastrous news. However, this cannot compare to the panic that followed the collapse of Lehman Brothers.

I recently talked to someone who worked in corporate bond markets, and he told me how the market had dried up after his broker sold $1 million worth of corporate bonds to the stock exchange, but didn’t receive a single offer back, not even a penny. He He was in shock, returning to the office and realizing that everything he had taken for granted was gone.

When I asked him the same question about how the recent crypto crash would affect his business, he responded with “zero.” ExceptExcept for the fact that people were joking about the now disgraced founders of FTX, Sam Bankman-Fried.

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