Gun-Control Debate Puts Cryptocurrencies in the Mix
Divided we stand, corporations caught in the middle
As the gun-control debate rages in the U.S., there is an interesting twist that could directly, and positively, affect the cryptocurrency space.
In the wake of another horrific mass shooting where a 19-year-old took the lives of 17 Floridians, some corporations are considering doing away with, or have already abandoned, their relationships with companies that have dealings with the gun industry.
This includes financial industry players like Bank of America, which wants to have discussions with its gun manufacturer clients.
Their losses from cutting off customers or severing ties with clients could be a boon for the cryptos.
The tragedy
On Wednesday, Feb. 14, a deranged gunman entered his former school in Parkland, Fla., armed with the notorious AR-15 rifle. The semi-automatic weapon is notorious because it seems to be the weapon of choice by these mass murderers who’ve used them in previous attacks at schools.
Before he was caught and charged, he shot and killed the 17, and wounded 14 others.
Divided we stand, corporations caught in the middle
Americans, divided on just about everything, immediately reacted to the tragedy by taking sides, and the “them against us” mentality pitted gun-rights advocates against gun-control zealots.
In the middle are corporations, and calls for them to denounce or support one side or the other.
Bank of America and BlackRock were among the first to choose.
While not pinpointing how many gun companies that manufacture assault rifles it has as clients, Bank of America said it was “limited.” It plans to do handle its approach to the gun industry by having sit-downs with gun makers, according to a spokesperson who sent statements to media outlets Reuters and Axios.
BlackRock, the largest asset manager in the world, followed, saying it would speak with weapons manufacturers and distributors “to understand their response” to the high school massacre.
The ‘Oracle’ says some corporate responses are ridiculous
As with all mass shootings, gun-control advocates immediately went after the National Rifle Association (NRA), which is the largest gun-rights lobbying group in the U.S.
Media outlets published the names of the companies that had business ties to the group. Threatened by boycott calls, led by the so-called left, caused some businesses to fold on the issues and sever their ties with the NRA.
Not everyone thought severing ties was a good idea, including Warren Buffett, the CEO of Berkshire Hathaway. He was pulled into the debate when interviewed by CNBC Monday.
Known as the Oracle of Omaha, Buffett said that getting involved in such politically-charged debates as gun-control is “ridiculous.”
Crypto space stands ready to fill the void
No matter, say some observers, because the crypto space stands ready to fill any void left by financial institutions who don’t want to be associated with anything related to firearms.
> If banks increasingly cut ties with gun sellers and advocates, the financial institutions may simply be handing their role over to the crypto crowd. There is considerable overlap between Second Amendment supporters and cryptocurrency advocates — both are enshrined in the rights for citizens to be independent of government control.
There’s a coin for that
Those wishing to buy guns in the U.S. had been encountering problems even before this latest tragedy.
> In the United States, it’s a cumbersome experience to find a platform for payment for firearm dealers since they fall under the ATF. ATF is the Alcohol, Tobacco, and Firearms Bureau, which rates you as a high-risk vendor. Finding a third party for processing the payment comes with very high fees.
So, enter cryptos like Guncoin, which removes the need for a third party. If more such tokens are issued, people should still be aware that they could have just as many drawbacks as benefits.
For example, cryptocurrencies designed for the gun industry provide buyers with a simpler and more affordable alternative to difficult and expensive payment services, according to CoinPupil. On that same note, it could be a challenge to find sellers who accept cryptos.
We’ll keep you posted about future developments over gun-control that may affect the crypto space.
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