It’s rare that banks walk away from an opportunity to make money. After all, they are in the business of selling investing and credit products to everyday people who want access to their wealth. By the way, those banks charge interests and fees on that wealth. It’s how they make money.
Believe it or not though, as sceptical and angry as a Bitcoin enthusiast can be at centralized authorities and banks, a $1 million Bitcoin just may send one major American Bank into hiding in the state of Wyoming.
That bank is JP Morgan. The person suggesting that the bank may have to move to Wyoming is none other than Caitlin Long. She’s a proud member of Wyoming’s blockchain committee and one of the most well-known and outspoken pro-Bitcoin voices across America among regulators and people who actually have the power to affect policies and laws surrounding blockchain technology and commerce.
Why Long Thinks JP Morgan Might Have to Move
Ms. Long believes that a $1 million Bitcoin price will spark lawsuits against major banks. The reason why is not because individual customers are going to complain that they missed out on Bitcoin and blame their local account manager. It goes much deeper than that.
Long’s explanation for why that spells trouble relates more to the fact that lenders put leads on collateral and that Bitcoin is proving it can be lent out and that interest can be earned on those loans.
Putting a lead on a loan is like making a claim to it. When Bitcoin’s price rises in value dramatically, more and more plaintiffs will come out of the woodwork and take major banks to court for money and fees that they believe belongs to them.
Why It Could Be Bad News for JP Morgan
While JP Morgan CEO Jamie Dimon became famous for hating on Bitcoin in the middle of its biggest Bull Run back in 2017, the bank announced in recent years it’s creating its own digital currency and Dimon now the use Bitcoin is a real threat to banking.
The reason JP Morgan could be in trouble is that they recently settled a $2.5 million lawsuit in which customers claimed that the institution was charging an exorbitant amount of fees to customers using credit cards to buy digital currencies.
Should a $1 million Bitcoin price strike, anybody looking hoping to gain a significant amount of profit from that by suing major banks might start with one of the biggest ones, JP Morgan.
So How Can JP Morgan Protect Itself?
According to Long, JP Morgan the best chance at protecting its own interests is for the bank to move its business to Wyoming. Of all the states across America, Wyoming is arguably the friendliest when it comes to laws surrounding digital currencies. In short, the bank is less likely to face lawsuits while doing business in the state. Given that it has already paid out the $2.5 million settlement in the case noted above, Dimon could save JP Morgan millions more by operating in a more relaxed environment that ironically enough is actually crypto friendly.
It’s anybody’s guess as to when Bitcoin will actually hit $1 million. Many analysts are predicting quite the Bull Run in the second half of 2020. Fortunately enough for JP Morgan at least at the moment, the market is still quite a few zeros away from hitting that precious mark. Should it actually happen, residents of the state of Wyoming just may end up being residents of the most bank friendly state it on all of planet Earth.
How ironic is it that it decentralized currency not tied to any bank could make banking easier for everyone in Wyoming?