Some U.S. banks take been unable to handle the increased demand generated past the stimulus checks being distributed to eighty million Americans.

On April xv the online platforms for US Bank, PNC, and Fifth Third Banks went down, apparently unable to handle the inflow of stimulus funds. On April 16 some users of the online-only Ally Banking company reported outages, with US Banking company customers reporting ongoing bug as well.

Banks have shown they are unable to scale with the increased demand. Ironically, the "lack of scalability" is a typical criticism of Bitcoin (BTC) and other blockchain networks, that have been happily chugging along in the meantime without any hiccups.

Banks like friction

Alex Mashinsky, CEO and founder of Celsius Network (CEL), who is known for his critical stance toward the banking industry, told Cointelegraph the event highlighted bug with the legacy infrastructure:

"We live in this technological age and everybody can scale, simply it'south not what's happening. Just the government is however printing concrete checks and sending it to people by mail."

Mashinsky believes that the reason why nosotros are yet relying on the onetime and tried banking system for the massive stimulus distribution is that the banks benefit from this friction:

"They could do that [utilize blockchain technology instead]. So it'south not a technological event. But, you know, when there's friction, the banks brand huge fees. When you eliminate friction with the blockchain, and then the banks would have to charge less, not more."

Mashinsky said that if the government wanted to utilize blockchain technology for this purpose, they could have used JPMCoin or Libra.

Although it seems unlikely that during this crunch the U.S. government will resort to the aid of blockchain technology, it is something that the governments effectually the world may be forced to consider in the near futurity.