First Republic Bank Collapses Becoming 3rd Major U.S Bank Failure in 2 Months an...

Machankura has launched a new USSD code – *920*8333# – to facilitate Bitcoin transactions for feature phone users. This innovative move is expected to revolutionize the way people in Ghana transact in cryptocurrencies, especially in remote areas where access to the internet is limited.

A warm welcome to all the new users from Ghana today.

May the Yam phone stay winning! https://t.co/PWf2aF0Rj6

— Machankura 8333 (@Machankura8333) May 1, 2023

The USSD code operates through the Lightning Network, a layer two scaling solution for Bitcoin that allows for faster and cheaper transactions. This means that feature phone users can now send and receive Bitcoin (BTC) without needing access to the internet or a smartphone. Transactions on the Lightning Network are also highly secure, making them ideal for small transactions and micropayments.

To use the new USSD code, users simply need to dial *920*8333# on their feature phone and follow the prompts to create a Bitcoin wallet and deposit funds. The service is available 24/7 making it convenient for users to transact at any time of the day.

This move by Machankura is expected to increase the adoption of cryptocurrencies in Ghana especially among those who do not have access to smartphones or reliable internet connectivity.

Overall, the launch of the USSD code *920*8333# by Machankura is a significant step towards expanding access to cryptocurrencies in Ghana.

In the last few months, Machankura’s usership has increased by 10x as word spreads about the product in Africa.

By leveraging the Lightning Network and offering a convenient and secure method of transacting, the company is empowering feature phone users to take advantage of the benefits of cryptocurrencies. This move serves as a model for other countries looking to expand access to cryptocurrencies.

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United States Federal regulators have seized First Republic Bank which will now be sold to JPMorgan marking the third major bank to collapse in less than two months.

According to NBC News, the Federal Deposit Insurance Corp. (FDIC) announced that it had taken over First Republic Bank on Labour Day, May 1 2023, and that JPMorgan Chase, the largest bank in America, would acquire most of the bank’s assets and deposits.

To protect depositors, we entered into an agreement with JP Morgan Chase Bank to purchase and assume all deposits and assets of First Republic Bank. Read more https://t.co/8KCKgJ2ZWR. pic.twitter.com/FRrIZk5aBY

— FDIC (@FDICgov) May 1, 2023

As part of the transaction, First Republic Bank’s 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours.  All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits.

First Republic held $229.1 billion in total assets at the time of closure, more than Silicon Valley Bank ($209 billion at the time of closure) making this the second-largest bank failure in American history.

The action by federal regulators to seize and sell First Republic Bank comes in the wake of the bank reporting a significant loss of about 40% of its deposits in the first quarter of 2023. According to NBC, with the failures of Silicon Valley Bank and Signature Bank earlier in 2023 and the recent rise in interest rates, many depositors have been seeking to move their money to banks that are perceived as safer and offer more appealing returns.

As of mid-March 2023, around 70% of First Bank’s deposits were uninsured, which meant they exceeded the FDIC’s guaranteed limit of $250,000, according to Bank of America.

Compared to other medium-sized banks, First Republic had a higher percentage of uninsured deposits at around 70%, which was the third-highest level after Silicon Valley Bank and Signature Bank. The median percentage of uninsured deposits for medium-sized banks was 55%.

In spite of a $30 billion cash injection from 11 peer banks in mid-March 2023, First Republic was unable to stem the outflow of funds. As a result, its stock price declined by over 75% over the past 30 days.

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