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BPI isn't an impartial source of information. They are essentially a think tank / lobby group for incumbent banks. See their about page: https://bpi.com/about-u
by Seattle3503 5y ago
BPI isn't an impartial source of information. They are essentially a think tank / lobby group for incumbent banks. See their about page: https://bpi.com/about-us https://bpi.com/about-us
- spywaregorilla 5y agoMaybe? Their thesis seems pretty straightforward though. Kraken deposits are uninsured. Kraken intends to invest your deposits in fixed income assets, which are vulnerable to capital losses if interest rates rise, among other things (e.g. corporate bonds). If these investments go negative, Kraken will have less than 100% reserves and there's no insurance to help customers, so the rational thing to do is withdraw all assets before others do.
- Seattle3503 5y ago> Kraken intends to invest your deposits in fixed income assets They don't source this claim at all, they just assert it and expect you to follow along. It's always easy to craft a just-so-story that sounds reasonable. We could find theories all over the internet about why existing banks today should collapse any minute. What matters is the expertise and credibility of the source.
- spywaregorilla 5y agoFixed income assets are just about the only thing they're allowed to invest in. If they leave it in cash they won't be profitable.