Nouriel Roubini predicted the ‘extinction’ of crypto exchanges amid SVB rescue

Economist and Bitcoin critic Nouriel Roubini drew a parallel between the bailed-out Silicon Valley Bank (SVB) and crypto-trading platforms.

“If a bank like SVB can go bankrupt in one day, then any exchange or ‘financial scheme’ in the crypto industry will do so faster. They are similar — a huge mismatch between maturities of assets and liabilities and poor-quality assets, lack of liquidity/capital, deposit insurance, and the ability to turn to a lender of last resort, as with real banks. […] So the crypto system is on the path to a systemic collapse,” — the expert wrote.

Roubini did not specify which companies might face such a fate.

Earlier, amid turmoil in the US banking sector, some industry participants expressed concerns about the future of digital-asset companies.

Previously, in 2020, the economist expressed confidence that the Biden administration would crack down on the ‘cryptocurrency junk’.

Previously, Roubini called the use of the term ‘cryptocurrency’ in relation to Bitcoin a misnomer.