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The Importance of the Election, Bank Consolidation, and Bitcoin Halving
This chapter discusses the upcoming election and the need for institutions to be prepared for a potential bank deflationary event. It explores the comparison to the bank consolidation wave of the 1990s and the impact of the BTFP facility and a steep yield curve on banks, as well as the potential effects of the Bitcoin halving.
Join us in this insightful episode where Caitlin Long of Custodia Bank and Wes Knobel delve into the innovative non-fractional reserve system, the challenges faced with the Federal Reserve, and the dynamic world of cryptocurrency banking. They discuss Custodia's unique approach, its role in the post-Silicon Valley bank crisis landscape, and the evolving challenges and opportunities in cryptocurrency custodianship. This conversation offers a deep dive into the intersection of traditional banking, regulatory environments, and the growing influence of digital assets.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:34 - How Custodia Bank is redefining traditional banking practices.
02:34 - The significance of Custodia's approach to customer deposits.
12:47 - Insights into the Federal Reserve's decision-making process.
22:19 - The implications of non-participation in fractional reserve banking.
22:19 - The importance of state laws in protecting digital assets.
28:21 - Wes Knobel's perspective on financial innovation and regulation.
38:31 - Caitlin Long's expertise in banking risks and legacy systems.
47:58 - The potential government intervention in cryptocurrency holdings.
47:58 - Predictions for the future of banking in the era of digital currencies.
01:00:37 - The recent SEC approval of Bitcoin ETFs and its impact.
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