Caitlin Long says bitcoin works as insurance amid ongoing bank runs
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.
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 the recent bank run began.
Caitlin explained how the banking system has inherently functioned with unsecured loans. To increase confidence in banks, they must ensure the entities sit on much more cash, even holding 1 for 1 cash reserves. This is where the idea of banks that do not lend comes in.
She added that people should have the choice of stability or interest. People who want banks for safekeeping and are not interested in interest should be allowed to use banks that provide such services.