Etsy is alerting vendors that processing some payments may take longer than normal as a result of the failure of Silicon Valley Bank. In an email sent to impacted merchants on Friday that Etsy shared with NBC News, the firm stated, "We wanted to let you know that there is a delay with your deposit that was planned for today. "Please know that our staff are working diligently to address this problem and give you your monies as soon as possible," the statement continued.
The unexpected demise of Silicon Valley Bank, according to an Etsy spokeswoman, was to blame for the delay in payments to certain sellers. Etsy is collaborating with more payment partners to ease deposits, they noted. The business anticipates paying impacted vendors "within the next several business days." Etsy is used by more than 7.5 million business owners to market their goods online.
On Friday, SVB had its biggest bank failure since the 2008 financial crisis. Federal regulators took control of the company. Because to SVB's tight links to Silicon Valley, its demise had repercussions across the entire tech sector. Roku warned on Friday that the decline may cause company to lose up to $487 million, or 26%, of its cash on hand. One day later, after Circle, the company in charge of managing the currency, revealed it had $3.3 billion stranded at the bank, the value of USD Coin, a stablecoin linked to the US dollar, dropped to a low of $0.87. The announcement nevertheless raised concerns about a potential financial contagion inside the cryptocurrency sector, even if Dollar Coin's value has largely recovered.
Most significantly, many folks won't receive their next salary on time. It includes staff members at early-stage companies and proprietors of small businesses that rely on Etsy for a living. Owen McKinney, one seller, told NBC News that the deposit holdup would have a "catastrophic" impact on his company.
Hard to predict what happens next. US Treasury Secretary Janey Yellen said on Sunday that the federal government would not save SVB and would instead concentrate on helping depositors in a statement to CBS's Face the Nation. "Let me be clear: During the financial crisis, investors and owners of major big banks received bailout funds. ... the changes that have been implemented imply that we won't repeat that," Yellen added. But, we are worried about the depositors and are working hard to attempt to satisfy their demands.
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