A recession appears inevitable given the current economic conditions, but Mr. Donald Trump may be accelerating its arrival by pushing for cryptocurrency regulation and proposing its use as collateral for bank loans.
During the 2008 financial crisis, banks held substantial physical assets such as mortgages and vehicles. However, it was a severe shortage of liquid assets that ultimately led to the collapse of the banking system.
This time, if cryptocurrency is accepted as collateral, banks could end up holding neither liquid nor tangible assets. Such a shift would fundamentally undermine the stability of the financial sector and could potentially lead to the complete breakdown of the banking system.
