The CEO of ARK Invest, Catherine Wood, has expressed her concern over the instability of the banking system and its potential impact on stablecoins, while noting the upward trend of bitcoin and ether.
Wood has criticized regulators for not taking timely action to prevent a potential banking crisis, which could serve as a catalyst for the growth of decentralized finance (DeFi).
According to Wood, the rhetoric of regulators is in stark contrast to the potential benefits of DeFi, which could provide more stable alternatives to traditional banking systems.
Despite the concerns about the banking system, bitcoin, ether, and other cryptocurrencies have maintained their momentum.
On March 14th, Bitcoin rose above $26,300 while Ethereum rose to $1,780. Wood believes that regulators should shift their focus to transparent and well-functioning decentralized platforms, rather than centralized and opaque ones that are closely tied to the traditional banking system.
Wood believes that regulators should have acted sooner to address the looming crisis, which has been visible for some time.
By not taking action, regulators may have inadvertently contributed to the growth of DeFi and the shift away from traditional banking systems.
Overall, Wood’s comments highlight the potential risks and opportunities of the current financial landscape and the need for proactive regulatory measures.