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$75M FDIC Coverage?
Rho.co claims to offer up to $75M FDIC coverage by splitting their customers deposits to a network of 400 banks. But, I know arrangements like these usually work until they don't. Is this a safe bet, given last week's events?
- PaulHoule 4y agoIt’s more that you won’t need them because if the govt is serious about stopping bank runs it will raise or eliminate the cap.
- necovek 4y agoWell, there is nothing that can prevent a bank run: at times of crisis when bank would suffer a bank run, when trust in currency is lost, government can only print out more money, thus deflating the value of a dollar. Which is when people will still want to convert to something that is better guaranteed to preserve value: prompting a bank run! US has so far resisted this because it's such a huge economy that nobody wants to see default on its debts (all foreign debt it has is denominated in USD), and as dollar drops, everybody starts buying in the US.