How Bitcoin and other magic internet money loans endanger your financial health
SalonThe collapse of Silicon Valley Bank last week raises serious issues far more significant than the obvious ones cited by the financial press and a broad range of Washington politicians. Why do banking regulators allow our federally insured and regulated banks to make loans using magic internet money as collateral? That's a crazy policy, no different than allowing banks to accept buckets of ice cubes in winter as collateral, even though they melt come spring and evaporate in summer Silicon Valley Bank is just one of many federally insured financial institutions that accept crypto currency as collateral for loans. After all, it's your, and my bank deposits, along with those of businesses, nonprofits, and our governments that the banks use to make loans, so it's not like we don't have a deep interest in blocking crypto of any kind as collateral for loans.
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