Casinos may seem like a risky place to store your wealth, but believe it or not, they are actually a much safer option than banks. The Nevada Gaming Commission requires casinos to hold enough cash in reserve to cover every single chip in play. On the other hand, banks are only required to hold between 0-3% of their deposits in reserve. So, while casinos are backed 100%, banks are only backed by fiat money.
Caitlyn Long, a Bitcoiner, is trying to change this. She has set up a company called Custodia, which is a 100% fully reserved bank. Unfortunately, when she applied to get an account with the Federal Reserve Bank (FRB) for Custodia, she got denied. Traditional fractional reserve banks, however, do have accounts with the FRB. This led her to believe that there is something preventing her company from being accepted, and she is now filing a lawsuit.
Although Long is unable to give out too many details due to the legal process, she did discuss the issue in an episode of the “What Bitcoin Did” podcast. The episode can be found at the link provided, and it is well worth a listen for anyone interested in learning more about the issue.
Overall, it is clear that Caitlyn Long is trying to create a fairer system for banking, one that is fully backed and doesn’t rely on fractional reserves. The fact that she has been denied an account with the FRB when fractional reserve banks have them leads us to believe that there is something preventing her from being accepted. The truth is sure to come out soon, and we can only hope that her lawsuit will be successful.