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BCB074_MAURICIO DI BARTOLOMEO: Building Financial Inclusion

Blue Collar Bitcoin

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The Problem With Liquidity and Asset Mismatches

A lot of these platforms were taking assets on open term, meaning, i give you this and i can withdraw it at any time. But to earn that interest, they were turning around and lending that asset, commit it for two years. So when you invest in something like mining infr structure or financing a minor  you create a liquidity missmatch or an asset missmatch. And so what happened was, as people were trying to withdraw their assets ill, some of these lenders start running into solvency issues,. Basically, because they don't have the assets available to process ther withdrawal.

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