• Caitlin Long, the CEO of Custodia bank, recently spoke to CNBC about how investing in bitcoin (BTC) is an insurance policy.
• This increasing demand for BTC is due to the instability of the traditional financial system and banks being forced to stop banking crypto.
• Long suggested that people should be allowed to choose between stability or interest when it comes to their bank deposits.
Caitlin Long’s Interview on Bitcoin as Insurance
Increasing Demand for BTC
Caitlin Long, the CEO of Custodia bank, said in a recent interview with CNBC that investing in bitcoin (BTC) is an insurance policy given its incredible performance amidst an ongoing bank crisis. In the interview, Long said that although she could not make a price prediction like Balaji Srinisavan, who said that BTC would hit $1 million in 90 days, she agrees more people are waking up to the instability of the traditional financial system and are looking to bitcoin. Long said that BTC is bullish because stablecoins are losing banking access due to the failure of major banks. Moreover, regulators are forcing banks to stop banking crypto, causing more problems for stablecoins. As such, many investors are selling their stablecoins for BTC. This buying pressure for BTC is the trigger for the ongoing bulls. Moreover, investors consider more stable assets like BTC as an insurance policy amid the ongoing bank run. Being scarce, BTC is attracting investors who seek insurance for their funds.
Paradigm Shift in Traditional Financial System
Long also highlighted that many people are noticing a paradigm shift in the traditional financial system, with people moving to BTC. Regarding the current bank run, Caitlin noted that many businesses with massive payrolls exceeding $250,000 a month want safe banks which do not lend. She said Custodia proposed this solution weeks before this recent bank run began and believes people should be allowed to think of their bank deposits as theirs without having them act as unsecured loans towards leveraged counterparties which may fail.
Banks That Do Not Lend
To increase confidence in banks, they must ensure entities sit on much more cash even holding 1:1 cash reserves according to Caitlan on her March 21st interview with crypto journalist Laura Shin on The Unconfirmed Podcast where they discussed Operation Choke Point 2.0; something which gives individuals choice between stability or interest when it comes to their deposits at their respective banks instead of having them act as unsecured loans toward counter parties who may fail eventually leaving individuals without anything left behind after payments have been processed through those respective accounts held by those same individuals at those same respective institutions failing eventually due lack of liquidity restraints and regulations set forth by governing bodies and legislators all around .
„People Should Be Allowed To Think Of Their Bank Deposits As Theirs“
The concept proposed by Custodia was thought out weeks prior before this recent wave started where individuals were searching for answers leading them away from conventional banking systems towards alternative solutions offered through digital assets such as Bitcoin bringing positive sentiment back into play even during times like these where economic uncertainties take hold within our markets worldwide causing chaos amongst holders . Caitlan’s opinion was clear during her interview „people should be allowed think off their bank deposits as theirs…when you make more than a $250k deposit into a bank you’re making an unsecured loan too leveraged counterparty which might fail“.
Conclusion: A Paradigm Shift Towards Bitcoin?
With all these events taking place simultaneously one can only wonder if we’re seeing a possible paradigm shift towards digital assets such as Bitcoin acting not only as an investment vehicle but also functioning similarly like Gold did back in time where it was used not just as currency but rather seen almost like tech-gold offering safety nets when most needed while still providing monetary value backed up by blockchain technology allowing transactions made using Bitcoin move seamlessly throughout web networks globally .“