I presume that the major banks do not have exposure to Bitcoin?
If major banks had exposure to Crypto it would not pose a stability issue if said crypto collapsed. Banks are now much better capitalised vs the previous financial crisis, thus they would have to hold capital adequate to the underlying risk of cryptocurrency, just like they do for every other asset they have exposure to.
It is incorrect to compare the banking landscape to that of 07/08....or banking regulation would have failed for the last 10 years.
I don't have much sympathy, but I wonder if there is a risk of a further negative impact on the younger generation, who are already being priced out of property ownership. I'm guessing that crypto ownership is heavily skewed towards the 20s-40s, as suggested by this US analysis;
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I think what is at play here is that the 18-45 cohort are digital natives, especially the 18-25 year old bracket.