Founder Buys Community Bank To Finance Crypto Dreams

by | Jul 2, 2019 | Cryptocurrency, Cryptocurrency News |  Jeffrey Berns | Cryptocurrency

Jeffrey Berns, the eccentric founder of blockchain incubation and investment firm, has purchased a small community bank in Las Vegas, Nevada that will aid him to secure financing as he manifests his decentralized dreams, according to The Nevada Independent.

Berns has previously expressed his desire to construct a Reno-sized, blockchain-focused smart city and e-sports arena in the Nevada desert. With this buyout, the 56-year-old attorney adds that the current financial system is a hindrance and he fears that the banking complex would cut off his supply of capital. 

As per the publishing, Berns $28 million acquisition of the Kirkwood Bank of Nevada could be “a small but critical step in helping the nascent company achieve its wildly ambitious goals.” Berns hopes that along with financing his own projects, Kirkwood Bank of Nevada may become a leading bank for the blockchain industry.

He adds: 

“It’s to create an environment where the blockchain ecosystem, the legitimate businesses out there who are trying to build projects that are going to empower the individual and better the world… have a bank that understands what they’re doing and isn’t fearful. Banks are hesitant, because if this takes off, you don’t need banks anymore. They become obsolete.” 

Reportedly, Berns purchased the bank through a separate holding company in order to mitigate the reporting and ownership responsibilities. Moreover, he adds that he plans to decentralize his companies in the future, turning power over to users of the system. He adds: 

“I don’t think the regulators would have ever been comfortable with that.”

He further adds that he may attempt to limit the integration of Blockchains with the bank to create a sandbox to test his financial technology and blockchain ideas.

“I needed a playground. I needed a place to do proof-of-concept with regulators to show that loans can be done in such a way that if I have $1,000, I could invest 10 cents in 10,000 loans and, it would all be done on the blockchain and micro payments would be made, and there’s no funny business.”

Berns initiated to negotiate with Kirkwood began in February 2018 and it took him a year to research for a banking partner. He paid $25 million for the entity and invested an additional $3 million.

Read more: CFTC Grants ErisX Licences To Settle Futures In Bitcoin

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