Some U.S. banks have been unable to deal with the elevated demand generated by the stimulus checks being distributed to 80 million Americans.
On April 15 the net platforms for US Bank, PNC, and Fifth Third Banks went down, apparently unable to deal with the influx of stimulus funds. On April 16 some customers of the online-only Ally Bank reported outages, with US Bank clients reporting ongoing issues as properly.
Banks have proven they’re unable to scale with the elevated demand. Ironically, the “lack of scalability” is a typical criticism of Bitcoin (BTC) and different blockchain networks, which have been fortunately chugging alongside within the meantime with none hiccups.
Banks like friction
Alex Mashinsky, CEO and founding father of Celsius Network (CEL), who is thought for his vital stance towards the banking business, instructed Cointelegraph the difficulty highlighted issues with the legacy infrastructure:
“We live in this technological age and everybody can scale, but it’s not what’s happening. But the government is still printing physical checks and sending it to people by mail.”
Mashinsky believes that the rationale why we’re nonetheless counting on the outdated and tried banking system for the huge stimulus distribution is that the banks profit from this friction:
“They could do that [use blockchain technology instead]. So it’s not a technological issue. But, you know, when there’s friction, the banks make huge fees. When you eliminate friction with the blockchain, then the banks would have to charge less, not more.”
Mashinsky stated that if the federal government wished to make use of blockchain expertise for this goal, they may have used JPMCoin or Libra.
Although it appears unlikely that in this disaster the U.S. authorities will resort to the help of blockchain expertise, it’s one thing that the governments around the globe could also be pressured to think about within the close to future.