The collapse of major banks highlights the need for Bitcoin (BTC) and self-custody, according to Pascal Gauthier, CEO and president of hardware wallet provider Ledger.
In an interview with Cointelegraph reporter Joseph Hall at Blockchain Week Paris, Gauthier spoke about how recent events show how BTC can be a safe haven against the threat of central authorities. He explained that:
“Bitcoin was designed in reaction to Lehman Brothers in the 2008 crisis. It was designed because central authorities cannot be trusted. And it is designed because it is clear that the central authorities will fail. It is not a question of if. It’s more a question of when.”
According to Gauthier, whenever incidents like Celsius, FTX, and bank crashes occur, people flock to self-custody and crypto. “Whenever the market gets stressed and when people fear for their savings, you know, they rush into cryptocurrencies and the ledger,” he noted.
In addition, the Ledger executive also believes that people are beginning to notice the reality of the banks due to the current situation. Gauthier explained that many people have the idea that the purpose of banks is to safeguard people’s funds because even if the banks fail, people will be reimbursed. However, this may not be the case.
“They are realizing that, in reality, that is not necessarily the case. And that’s why it’s problematic. But then again, it’s a crash course in Bitcoin and why it exists and why it’s needed for the future,” he explained.
Related: 1inch Network Co-Founder To Crypto Newbies: ‘Trust No One, Verify’ | PBW 2023
When asked if traditional brands entering Web3 can potentially become a threat to the decentralization of cryptocurrency, Gauthier expressed confidence that this will not happen. He said:
“If this happens then crypto is dead and then we move on to the next thing. I mean, will crypto be decentralized or not. And all these brands really understand this.”
According to the Ledger CEO, brands were able to learn a lesson from Facebook’s failure to respect the spirit of cryptocurrencies, which is decentralization. “We’ve seen the movie now, you know, they (Facebook) failed because they didn’t respect some of the fundamental principles of what cryptography is,” he said. He added that anyone trying to centralize crypto is doomed to fail. According to Gauthier, these are “two magnets that just aren’t going to stick together.”
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