Replacing Trust with Truth – Banks fear crypto

According to hedge fund manager Mark Yusko, banks take $7 trillion dollars out of the system every year. The advent of triple entry accounting with blockchain means that banks are becoming redundant.

Banks fight dirty

Founder of Morgan Creek Capital, Yusko recently gave an interview in which he gave a portrayal of the banks that isn’t often heard. He stated that banks have paid more in fines for criminal acts such as fraud and money laundering than the entire market cap of Bitcoin.

He affirmed that banks are extremely worried about crypto and blockchain technology because it heralds an end to their existence, given that the middle man is now no longer needed. He said:

“We (the banks) skim $7 trillion a year out of this system. It’s 6 to 8% of GDP that goes to the banks for trust – but we can replace trust with truth.”

Yusko is of the belief that the FTX collapse was actually orchestrated in order to bring controversy to the crypto industry and allow US regulators to react by launching an aggressive onslaught against the crypto sector.

He believes that the banking industry, in charge of money for hundreds of years, is in league with regulators to cripple the crypto industry so that it can continue its hegemony over printing money.

Yusko expects the banks’ fight against the crypto industry will carry on for the next few years before the obvious advantages of crypto and blockchain are finally recognised and given government support. 

How the incumbent fights the newcomer

An example of an antiquated and embedded system that seeks to suppress and cripple a new and better system is given by Yusko. He points to when cars were invented and how the incumbent transport system of the horse and buggy sought to do just this in the late 19th century.

Reportedly there was collusion between those seeking to protect the horse and buggy system, and the regulators. Ridiculous and onerous rules were imposed on cars that forced them to have someone walking ahead of them holding a red flag. In addition, three persons were required by law to have charge of a vehicle, and additional persons were needed if wagons or carriages were attached.

These harsh and exacting laws were in place for 30 years before being repealed, and technology was finally allowed to progress. 

Imposition of CBDCs

According to Yusko, banking is attempting to do the same thing against crypto. He believes that moves are afoot to impose central bank digital currencies on citizens, forcing their use. Yusko said of CBDCs:

“If you haven’t watched Agustin Carstens (Head of the Bank for International Settlements) talk about what a CBDC actually is – and of course the central bank should control how, when, and if you are allowed to spend ‘your’ money – it’s one of the most chilling 1 minute and 47 seconds that you’ll ever watch.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.