The recent collapse of major banks highlights the need for Bitcoin and self-custody, according to Pascal Gauthier, the CEO and Chairman of hardware wallet provider Ledger. In an interview with Cointelegraph, Gauthier explains that these events showcase Bitcoin’s potential as a safe haven against the threat of central authorities. He notes that Bitcoin’s design in response to the 2008 financial crisis serves as evidence of its ability to provide security in times of economic turmoil.
Furthermore, Gauthier sees that incidents like Celsius, FTX, and bank collapses drive people towards self-custody and cryptocurrency. “Whenever the market gets stressed and whenever people fear for their savings, you know, they rush to crypto and to Ledger,” he stated. As such, the current situation has put many people on notice regarding the realities of banks. They may have believed that banks exist to safeguard their funds and that even if banks fail, people will be reimbursed. However, this is not necessarily the case.
Therefore, Gauthier believes that it is a “crash course” on Bitcoin, its existence, and its necessity for the future. The Ledger executive argues that many people are figuring out that traditional banking is not as safe as they once believed it to be. They now realize that Bitcoin and other cryptocurrencies provide an alternative, secure option for protecting their finances.
On the issue of traditional brands entering the world of Web3 and potentially becoming a threat to the decentralization of crypto, Gauthier expresses confidence that it will not happen. He explains that if it does happen, then “crypto is dead, and then we move on to the next thing.” Gauthier believes that brands understand the importance of decentralization and have learned from Facebook’s failures.
According to Gauthier, Facebook’s attempt to enter the crypto space failed because they did not respect the ethos of decentralization. He notes that trying to centralize cryptocurrency is destined to fail because centralization and decentralization are “two magnets that’s just not going to stick together.” As such, the Ledger CEO believes that traditional brands that enter the crypto space will be aware of the importance of decentralization and respect this fundamental principle.
Overall, the collapse of major banks serves as a reminder of the vulnerabilities of traditional banking systems. The need for Bitcoin and self-custody is becoming increasingly apparent as people seek alternative ways of securing their finances. Furthermore, the crypto industry’s commitment to decentralization is crucial to its survival and ensuring that people have a secure and reliable option for their financial needs.
