Venture investor and billionaire Tim Draper published recommendations on asset diversification, including via cryptocurrencies.
Some tips for business cash management post SVB. https://t.co/dVEw0EJJyZ #bitcoin #trust #freedom
— Tim Draper (@TimDraper) March 24, 2023
In a report aimed at entrepreneurs, Draper wrote that companies “can no longer rely” on just one bank or regulator.
“For the first time in many years, governments are seizing banks, risking insolvency. Bitcoin is a shield against the domino effect of financial mismanagement with excessive control”, the businessman noted.
He added that “many startups” have turned to him for emergency assistance after the closures of Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank.
Draper proposed keeping short-term deposits for no more than six months in two separate accounts — in domestic and international banks. In his view, organisations should also convert to bitcoin or other digital assets an amount equal to two payroll funds.
The billionaire stressed the importance of such a safety cushion in case of unforeseen circumstances, as management is responsible for meeting payroll deadlines “even in a crisis”.
“A plan should be devised for bank bankruptcies, which are happening more and more frequently if the government continues to print money and sharply cut interest rates to counter inflation”, the document says.
To prevent phishing attacks, the businessman advised companies to verify all counterparties and study the instructions for interactions between parties.
Earlier Draper took the stage at the Paris Blockchain Week 2023 summit with a song about Bitcoin. He dedicated these verses to SVB and “all the banks that collapsed and will collapse in the future”.
Earlier in February, the billionaire proposed to Sri Lankan authorities to legalise the first cryptocurrency.