- Following the shutdown of Silicon Valley bank, a prominent tech founder has suggested that Twitter purchases the bank and turns it into a digital bank.
- Elon Musk, the current CEO of Twitter, has welcomed the suggestion with open arms, revealing that he is very open to the idea.
The cryptocurrency and fintech industry recorded alarming events from different sectors this week. The response to the collapse of different platforms has reflected bullish and bearish sentiments from market observers.
Most recently, a prominent figure in the tech industry has sparked a conversation around what should follow the downfall of one of the leading U.S.-based banks, which is making rounds in the market after it recently shut down.
Min Liang Tan, the CEO and Founder of Razer kickstarted what now looks like a debate on whether or not Silicon Valley Bank (SVB) can be revived when he suggested that Twitter should look into purchasing the bank.
Tan additionally suggested that Twitter should consider taking the bank from a traditional physical bank and turning it into a digital platform. Although he didn’t expand on why taking the bank digital would be beneficial, digital banks are typically known to provide more accessibility and transparency, while maximizing loss.
Twitter might be purchasing Silicon Valley Bank, Elon Musk reckons
Elon Musk, the CEO of Tesla, and current head of the microblogging platform Twitter has responded positively to the founder’s comments. Musk welcomed the suggestion with open arms, stating that he was open to the idea.
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
In the coming months, it will come as no surprise if Elon Musk moves forward with the idea to purchase and revamp the bank. However, at present, the market is still expressing worry about the downfall of fintech and crypto-related firms.
The shutdown of SVB comes not long after the collapse of Silvergate bank. Although SVB prioritized tech, it wasn’t entirely pro-crypto.
However, the bank was reported to have banked cryptocurrency hedge funds and Venture capital firms Castle. island venture, Pantera, Blockchain Capital, and Dragonfly.
Silicon Valley bank crashed on Friday after it experienced a bank run for 48 hours and failed as depositors quickly moved their funds from the bank after the SVB’s balance sheet spread.
On Friday, United States regulators clamped down on SVB. The move would lead to the decline of global banking shares as market players reacted negatively to the new development.
The assets of Silicon Valley bank were seized by U.S. regulators and are now placed under the watch of the US Federal Deposit Insurance Corporation.
SVB was the 16th largest bank in the country. The commercial bank was headquartered in Santa Clara, California. SVB was branded as the go-to lender for many tech startups before its collapse.
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