Tag: Silicon Valley Bank

US regulators warn public not to keep money in PayPal, Venmo and other payment apps; here is why
5Jun By adminNo Comments
Technology

US regulators warn public not to keep money in PayPal, Venmo and other payment apps; here is why

[ad_1] It is an undeniable fact that digital wallets and mobile payment services such as PayPal, Venmo, and others have changed how people transact financially on a daily basis. Credit and debit cards were said to be the technologies that declined cash transactions and now digital wallets are slowly replacing bank cards, as their popularity continues to grow. According to reports, the total transaction volume across mobile payment services in 2022 crossed $1 trillion for the first time and closed at $1.1 trillion. However, US regulators are now warning their citizens to not store large amounts of money in these apps or replace banks and credit unions with them because they do not offer security on users' money.According to a report by CNN, the Consumer Financial Protection Bureau (CFPB)...
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Bank runs used to be slow. The digital era sped them up
16Mar By adminNo Comments
Technology

Bank runs used to be slow. The digital era sped them up

[ad_1] A bank run conjures images of “It's a Wonderful Life,” with anxious customers crammed shoulder to shoulder, desperately pleading with a harried George Bailey to hand over their money.The failure of Silicon Valley Bank last week had the panic but few other similarities, instead taking place on Twitter, message boards, cell phones and bank websites.Tw What made the failure of Silicon Valley Bank unique compared to past failures of large banks was how quickly it collapsed. Last Wednesday afternoon, the $200 billion bank announced a plan to raise fresh capital; by Friday morning it was insolvent and under government control. Regulators, policymakers and bankers are looking at the role that digital messaging and social media may have played in the collapse, and whether banks are ente...
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Silicon Valley exhales after US intervenes in SVB collapse
13Mar By adminNo Comments
Technology

Silicon Valley exhales after US intervenes in SVB collapse

[ad_1] Turning a popular aphorism on its head was a ploy by the professors to enliven a technical discussion. Turning a popular aphorism on its head was a ploy by the professors to enliven a technical discussion.Banking regulators said Sunday evening that depositors at Silicon Valley Bank, which was shuttered Friday, would have access to their funds Monday, putting to rest fears that startups would struggle to pay their employees this week. The bank's closure had followed interest rate hikes that hurt its startup customers and a failed capital raise attempt, spurring deposit withdrawals. Despite the palpable relief, questions still remained about the funding environment for startups, which had come to rely on Silicon Valley Bank for support to back unproven businesses that larger banks...
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Silicon Valley Bank Collapse Shows Fickleness of Crypto Money
13Mar By adminNo Comments
Technology

Silicon Valley Bank Collapse Shows Fickleness of Crypto Money

[ad_1] When the world's second-largest stablecoin got caught up in the collapse of a California bank late last week, it reprised the now-famous maxim of Nobuhiro Kiyotaki and John Moore. “Evil,” the economists had claimed in a 2001 lecture, later made available as a paper of the same title, “is the root of all money.”Turning a popular aphorism on its head was a ploy by the professors to enliven a technical discussion. “Evil is a strong word,” they wrote. “You may find the moral category too severe for something as mild as breaking a promise. In which case, you may want to change the title to ‘Distrust Is the Root of All Money.' But that wouldn't have quite the same ring.” Events last week showed that Kiyotaki-Moore may have been right, not just in their analysis but also in their hyper...
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Crypto Shaken as Silicon Valley Bank Risk Depegs 2nd-Largest Stablecoin
12Mar By adminNo Comments
Technology

Crypto Shaken as Silicon Valley Bank Risk Depegs 2nd-Largest Stablecoin

[ad_1]  The fallout from the failure of Silicon Valley Bank reached further into crypto, unhinging a key cog in the market that's meant to be among the safest digital assets in the space.The second-largest stablecoin, USD Coin traded as low as 81.5 cents as investors digested the exposure of its issuer Circle Internet Financial Ltd. to Silicon Valley Bank, which had just collapsed in one of the largest failures in US banking history. Late Friday, after hours of silence, Circle disclosed that $3.3 billion of its roughly $40 billion stockpile of reserves was held with the failed bank. On Saturday afternoon, Chief Executive Officer Jeremy Allaire provided additional detail on Circle's exposure to the bank, saying in a statement on the company's blog and in tweets that USDC was “100% colla...
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