Silicon Valley Bank’s (SVBVB
) sudden collapse this week has plunged the crypto market into chaos—even after one former regulator warned of looming bitcoin and crypto price “investor carnage.”
Subscribenow to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigate the latest bitcoin and crypto market crash
Regulators and Federal Reserve officials are scrambling to prevent the tech startup-focused bank’s shock implosion from turning into a full-blown financial meltdown.
Amid the mayhem, Changpeng “CZ” Zhao, the chief executive of the world’s largest bitcoin and crypto exchange Binance, hinted that now could be the time to buy a bank while Tesla billionaire Elon Musk said he’s “open to the idea” of Twitter buying Silicon Valley Bank.
It’s in a brutal bear market that you need up-to-date information the most! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
“Is it time yet? Not sure,” CZ posted to Twitter alongside a link to a November 2022 report in which he said Binance could potentially buy a bank to bridge traditional finance, bitcoin and crypto.
“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things,” CZ said during last year’s Web Summit conference, it was reported by Bloomberg. “We want to be the bridge between crypto and the traditional financial world.”
Meanwhile, Musk, whose electric car company Tesla still holds around $220 million worth of bitcoin, said he’s “open” to Twitter buying Silicon Valley Bank in response to a suggestion from Min-Liang Tan, the chief executive of gaming computer company Razor.
“I think Twitter should buy SVB and become a digital bank,” posted Min-Liang Tan.
Neither CZ nor Musk expanded on how or if they even could acquire Silicon Valley Bank.
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has swung wildly this month amid a crypto banking crisis that’s spread to the … [+] wider industry.
Forbes Digital Assets
The bitcoin and crypto industry was already in the midst of its own banking crisis when Silicon Valley Bank failed. Silvergate, a crypto-friendly bank, collapsed earlier this week after it was hit by customer withdrawals following the shock meltdown of major crypto exchange FTX last year.
Some in the crypto industry believe the U.S. is waging an unofficial war against crypto companies, branded Operation Choke Point 2.0, in an attempt to stifle the technology.