Eugene Ludwig, head of the Office of the Currency Control (OCC) under US President Bill Clinton and managing partner of a venture capital firm, attended the Clearing House and Bank Policy Institute annual conference yesterday. cryptocurrencies and made evaluations on the competition between banks.
Arguing that there is inequality between banks and crypto money platforms (lending platforms) due to regulatory deficiency, Ludwig argued that there are some risks arising from regulatory deficiencies and that this may also affect banks.
“Although cryptocurrencies and banks are in competition, crypto companies are getting away with many issues due to the lack of regulation. In this sense, there is an unequal playing field.
Liquidity problems on these platforms, which take deposits and offer lending services without regulatory clarity, could be the trigger for the next recession.
Banks should take back matters that fall within their mandate, rather than allow them to fall apart.”
Thinking that the digital dollar is also a threat to the banking sector, Ludwig stated that this initiative of the FED will take deposit services from banks and the government, and this may cause all kinds of problems.
“If the FED gets into crypto and takes its deposit experience from the banking industry and government, there is a great danger here. At this point, the banking system should be used as a cryptocurrency distributor.”
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