Caitlin Long on Bitcoin’s Banking Future: ‘Policymakers Are Going to Get What They’re Fearing’

If you’ve been into bitcoin for more than a few minutes, you’ve heard the phrase “be your own bank.” This, of course, is referring to the fact that bitcoin is a peer-to-peer network controlled by its users, not a central banking system. However, there is still room for banking in the world of bitcoin; Although different from the system we are currently familiar with.

Caitlin Long has fought tirelessly for sound banking practices, particularly regarding the dangers of leverage in bitcoin. Her work has brought positive attention to what banking should look like in the bitcoin space.

Long’s impressive, 22-year Wall Street background, combined with his candor and track record of championing sound money, has made him a legend in many circles. In his home state of Wyoming, Long founded and serves as CEO of Custodia Bank (formerly Avanti Financial Group), which works to bridge the gap between traditional banking and digital assets. Recently, Long has been struggling to become a digital asset bank with a Federal Reserve account for custodia. she has met the idiot Oppose from the Federal Reserve during this process, but Long has met these setbacks with conservatism, professionalism and integrity and continues to fight for Fed access to custodia through a protracted court battle.

It was a pleasure interviewing Long about his outlook on the bitcoin space and the future of finance, and I know you will find his responses insightful.

How and what did you first learn about bitcoin especially attracted you to it?

I first learned about it in 2012 from alternative schools of economic thought. I was a member of an email group and started noticing people talking about it. For those not familiar with alternative schools of economic thought, bitcoin has generated a lot of interest within various schools of thought. For example, those who follow the Austrian school of economics generally view bitcoin as a digital version of gold due to its limited supply and decentralized nature. It is an alternative store of value. They would also argue that, because bitcoin is apolitical and deflationary in nature, it is a better alternative to fiat currencies that rely on inflationary monetary policy.

There are many other arguments to be made around bitcoin and alternative schools of economic thought, but we do not have time to consider them here.

As a leader in the bitcoin banking sector, you have seen policy ups and downs in the US. Do you think Custodia will eventually be granted Fed membership and an account?

With regard to custodia, I’ll have to let the trial speak for itself. However, I am generally optimistic about the policy issue. The people in power in Washington, DC today thinking they have the power to destroy bitcoin should make us all laugh. bitcoin is already dead 474 Deaths and it’s still alive – it’s just code, and 8 billion people in the world already have the ability to run code on their smartphones. When organizations make decisions out of fear, they get what they feared. Here’s what US policymakers have to fear as a result of bitcoin services being pushed into the proverbial shadow: they will face a stronger, more globally distributed and therefore more resilient bitcoin network over which they have less visibility and control than the US dollar. On-off-ramp than today.

Do you see bitcoin as an asset that will help supplant the US dollar as the global reserve currency? Or as a means to a globally apolitical monetary system?

There are certainly strategic and national security benefits for the United States to maintain its leadership in this technology. Yes, dollars can be issued on the Lightning Network, for example, and the United States must accept it. The fact that stable coins have gained as much traction as possible is a testament to a world that wants the dollar to run on internet-speed payment rails.

Why is it important, in your opinion, to close the gender gap in bitcoin interest and adoption?

It’s a tough question, and it’s broader than just bitcoin. This fully applies to the technical sector as well as STEM fields. It’s no secret that I applauded bitcoin for female engineers at the University of Wyoming in 2017. In doing so, I am trying my best to encourage women to continue in the engineering field after passing their matriculation.

Aside from women speaking up, the best thing the bitcoin space can do to attract more women, and indeed people of all backgrounds, is to keep adding blocks. Adoption will continue to grow over time!

afterword

There is a great deal of irony in the fact that Long and Custodia’s team are operating in the most efficient way possible and yet they are experiencing resistance from within the banking regulatory establishment. The concept of fully reserved deposits doesn’t reckon with banking regulators because of its decades-long notion of being at the altar of debt and refinancing. Pioneers like Long deserve not only our respect, but our support because they are the first to break.

This is a guest post by Becca Bratcher. The opinions expressed are solely his own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.