If you’ve been using Bitcoin for longer than a few minutes, you’ve heard the phrase “be your own bank”. This, of course, refers to the fact that Bitcoin is a peer-to-peer network, controlled by its users, rather than a centralized banking system. However, there is still room for banking in the Bitcoin world; Through a difference from the system we know today.
Caitlin Long has fought tirelessly for sound banking practices especially regarding the leverage risks in Bitcoin. Her work has brought positive attention to what banking should look like in the bitcoin space.
Long’s impressive background of 22 years on Wall Street combined with her honesty and track record in advocating sound money have made her a legend in many circles. In her home state of Wyoming, Long founded and serves as CEO of Custodia Bank (formerly Avanti Financial Group) which is bridging the gap between traditional and digital banking assets. Recently, Long has been in the trenches fighting for Custodia to become a digital asset bank with a Federal Reserve account. I was met with no sense opposition of the Fed through the process, but Long met these setbacks with stoicism, professionalism, and integrity and continued to fight for Fed access to Custodia through a drawn-out court battle.
It was a privilege to interview Long about her outlook on the Bitcoin space and the future of finance, and I know you’ll find her responses insightful.
How did you first learn about Bitcoin and what? especially your destination?
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 at that time. For those who are not familiar with alternative schools of economic thought, Bitcoin has sparked a lot of interest within the various schools of thought. For example, those who follow Austrian school economics will generally see bitcoin as a digital version of gold due to its limited supply and decentralized nature. It is an alternative store of value. They may 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 about Bitcoin and alternative schools of economic thought, but we don’t have time to get into these.
As a pioneer of the Bitcoin banking sector, you have seen the highs and lows of politics in the United States. Do you think Custodia will eventually get a membership and an account with the Federal Reserve?
I must let the lawsuit speak for itself regarding Custodia. However, I am optimistic about the policy issue in general. People in power in Washington D.C. today think they have the power to kill Bitcoin, which should make us all laugh. Bitcoin is already dead 474 Deaths and still lives – 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 tend to get exactly what they fear. US policymakers will get what they fear here as a result of bitcoin services being pushed into the proverbial shadows: they will be faced with a stronger, more globally distributed and therefore more resilient bitcoin network, where they will have less visibility and less control over the US dollar ramps in/out than they have today.
Do you see bitcoin as an asset that will help maintain the US dollar as a global reserve currency? Or as a vehicle for a globally apolitical monetary system?
There are certainly strategic and national security benefits for the United States in maintaining leadership in this technology. Yes, dollars can be issued on the Lightning Network, for example, and the United States should embrace that. The fact that stablecoins have gained as much traction as they do is testament to the world’s desire for the dollar to run on pay rails at the speed of the internet.
Why do you think it is important to close the gender gap in Bitcoin interest and adoption?
This is a difficult question, and it is broader than just Bitcoin. This applies to the technology sector as a whole, as well as to STEM fields in general. It’s no secret that I funded a scholarship for women engineers at the University of Wyoming in 2017 with the prestigious bitcoin. In doing so, I do my best to encourage women to stay in the engineering field once they are accepted into an engineering major.
Aside from women speaking out, 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 over time!
Conclusion
There is a fair amount of irony in the fact that Long and the team at Custodia do things in the most compliant way yet they encounter resistance from within the banking regulatory establishment. The entire concept of reserved deposits does not sit well with banking regulators because of decades of indoctrination on the altar of debt and repayment. Pioneers like Long deserve not only our respect, but also our support because they are the first to transgress.
This is a guest post by Becca Bratcher. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.