U.S. regulatory authorities have shut down Republic First Bank, located in Philadelphia, representing the country’s initial bank collapse in the year 2024.
The announcement has ignited discussions among cryptocurrency enthusiasts as Bitcoin and various other alternative digital currencies experienced minor setbacks in the wake of the development.
“CEO Zesh Marius Martocsan mentioned in a post on X dated April 26 that yet another financial institution, Republic First Bank, has failed. He expressed his preference for Bitcoin in light of this event.”
“According to the pseudonymous cryptocurrency trader known as Pillage Capital, the collapse of Republic First Bank is a significant event to examine, as bank failures provide the most compelling stories for the cryptocurrency sector,” Pillage Capital stated in a post dated April 26 on platform X.
“Crypto commentator Randi Hipper posed a question to her 87,100 X followers on April 26: ‘How much more failure is necessary before individuals begin acting as their own banks?'”
On April 26, the Pennsylvania Department of Banking and Securities took control of Republic First, and consequently, the Federal Deposit Insurance Corporation (FDIC) was named as its receiver. According to a statement released by the FDIC on the same day, the organization will be responsible for assuming the vast majority of the deposits and will take over all of Republic Bank’s assets.
As of January 31, Republic First reported having around $6 billion in total assets and deposits totaling about $4 billion.
Following a challenging year for banks, data from the FDIC reveals that there have been five bank collapses in the U.S. in 2023.
JPMorgan took over First Republic Bank, an independent company not connected to Republic First, when attempts at rescuing it were unsuccessful in May 2023.
In March 2023, the Federal Reserve declared that Signature Bank was being shut down in an effort to safeguard the American economy, pointing out concerns over a “systemic risk”.
Just a few days after the closure of Silicon Valley Bank was mandated, another bank that was supportive of cryptocurrency transactions, Silvergate Bank, declared that it would cease operations and enter into a voluntary dissolution process, happening only a week before.
