To rephrase the given passage: Many financial experts believe that stability is a distinguishing factor between traditional banking and crypto. It is assumed that customers of reputable banks tend to keep their money in their accounts for extended periods due to various reasons. However, the recent quick withdrawals of deposits from digital-asset companies such as Celsius Network, FTX, and Voyager Digital reveal that the same level of loyalty does not exist in crypto.
Conversely, the recent failures of traditional banks like Credit Suisse, Silicon Valley Bank (SVB), and Signature Bank have shown that they too are susceptible to swift deposit runs, mainly because of the dominance of online banking and its association with social media rumors. This raises the question of how different traditional banking is from crypto, considering that customers worldwide can transfer funds from one bank to another instantly.
The dynamic has significant long-term implications for the traditional economy and financial system since banks rely on deposits for long-term lending. The reputation of crypto may benefit if fast-moving internet money becomes the norm, rather than an unfavorable feature of blockchain-based finance.