$28 million, the blockchain company bought a bank

According to local media reports yesterday, blockchain incubator and investment company blockchain.com weird founder Jeffrey Berns acquired a small community bank in Las Vegas, Nevada, hoping to ensure the flow of funds, thus showing him to the center Dreams.

Blockchain

Berns said his ambitions are incompatible with the current financial system, and he is worried that the banking system will cut off his funding. The 56-year-old founder had previously announced plans to build a block city-centric smart city and e-sports venue in the Nevada desert that is as big as Renault.

He bought the Kirkwood Bank of Nevada (KBN) for $28 million, a small step in helping the emerging company achieve its ambitious goals, but it is a crucial step. In addition to financing his own projects, Berns also hopes that KBN will become a leading bank in the blockchain industry.

“This is to create a blockchain ecosystem where legitimate companies empower people and create a better world by building projects… With such a bank, they can understand what they are doing , no longer worry them."

“Many banks (for cryptocurrency companies) are hesitant. If this plan is successful, you will no longer need a bank. They are out of date.”

Berns acquired the bank through another holding company to ease filing and ownership responsibilities. In addition, he said that he plans to implement the decentralization of the company in the future and hand over power to system users.

“I don't think regulators will be happy with this,” he added, adding that he might try to deploy a blockchain at the bank and create a sandbox to test his financial technology and blockchain philosophy.

“I need a test site. I need a place to do a proof of concept with the regulator to prove that the loan can be released like this: If I have $1,000, I can invest 10 cents on 10,000 loans, and everything will go through the blockchain and Micropayment is complete, this is a very serious business."

Berns' negotiations with KBN began in February 2018, when he spent a year looking for a bank partner. He paid $25 million for the bank and an additional $3 million.

According to the FDIC (Federal Deposit Insurance Corporation), the bank's assets exceed $86.6 million, and the return on equity in 2019 is 9.14%. Since its inception in 2008, the company has never changed ownership.

The bank's president, John Dru, said that in addition to the bank name and the opening of a branch in northern Nevada, the banking business will not be adjusted for the time being. The new name of the bank is not yet known.

“I'm sure the customer won't notice any changes. All the executives will stay. The directors have not changed, they have to stay. Even the account number will not change.”

Berns also said he plans to buy or set up a 3D printing company to print his blockchain city. He is considering using an undervalued building material, industrial cannabis, in this process, and may use blockchain technology to grow cannabis on 67,000 acres.