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The collapse of major banks highlights the need for Bitcoin (BTC) and self-custody, according to Pascal Gauthier, the CEO and chairman of hardware wallet provider Ledger.

In an interview with Cointelegraph reporter Joseph Hall at the Paris Blockchain Week, Gauthier spoke about how recent events show how BTC can be a safe haven against the threat of central authorities. He explained that:

According to Gauthier, whenever incidents like Celsius, FTX and bank collapses happen, people flock to self-custody and to crypto. Whenever the market gets stressed and whenever people fear for their savings, you know, they rush to crypto and to Ledger, he said.

In addition, the Ledger executive also believes that people are starting to notice the reality of banks because of the current situation. Gauthier explained that many people come from the idea that the purpose of banks is to safeguard peoples funds because even if banks fail, people will be reimbursed. However, this may not be the case.

They're figuring out that actually, it's not necessarily the case. And so it's troublesome. But again, it's a crash course to Bitcoin and why it exists and why it's necessary for the future, he explained.

Related: 1inch Network co-founder to crypto newbies: Dont trust anyone, verify | PBW 2023

When asked if traditional brands coming into Web3 can potentially become a threat to the decentralization of crypto, Gauthier expressed confidence that this will not happen. He said:

According to the Ledger CEO, brands were able to learn a lesson from Facebooks failure to respect the ethos of crypto, which is decentralization. Weve seen the movie now, you know, they [Facebook] failed because they didnt respect some of the fundamental principles of what crypto is, he said. He added that anyone trying to centralize crypto is destined to fail. According to Gauthier, these are two magnets thats just not going to stick together.

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Ledger CEO: The collapse of banks is a crash course to Bitcoin | PBW 2023 - Cointelegraph