In a tweet, the CEO of Binance, Changpeng Zhao (aka “CZ”), announced on Wednesday that banks are not needed forever for money transfer.
The future of cryptocurrencies is controversial
What was the trigger for this tweet? We get to the bottom of the tweet of CZ. Earlier in the day, Ron Karpovich, global head of eCommerce solutions at JPMorgan Chase, was interviewed about the competition from “disruptors” in the fintech space and came up with this answer:
“Well, eventually they’ll have to use a bank behind the scenes to raise money. There is more partnership than competition in this area. “
Later in the interview Karpovich explained:
“I think at the end of the day, you’ll find the technology behind the scenes will be the blockchain. I do not know if you as a consumer will notice anything in this room. I think that you will continue to use the payment method you prefer, be it a wallet, be it a card, be it the bank account, or behind the scenes, the instant way of using a blockchain, or the use of this kind of technology make the payment in this area faster or cheaper. “
In this context, we consider the tweet of CZ:
“Most companies do not already use banks and they work well.”
In companies, salaries are one of the largest expenditures traditionally used by banks for these salary payments. The question is whether this will continue to be the case in the future. In any case, the number of companies paying salaries in crypto has increased in the area of crypto.
Employees receive salary payments in cryptocurrencies
At a Liechtenstein Stock Exchange (LCX) event in August 2018, Michael Arrington, founder of Techcrunch and partner of digital asset management Arrington XRP Capital, was apparently informed by the Binance CEO that over the past year, 90 percent of all Binance employees paid a salary in Binance Coin ( BNB).
In addition, Twitter and Square CEO Jack Dorsey yesterday tweeted that they wanted to put together a team working full-time to improve the Bitcoin and Cryptocurrency ecosystem. Here, the employees are to be paid in Bitcoin.
As a result, CZ announced on Twitter that Binance is paying salaries in both Bitcoin and BNB.
“JPM just does not understand it yet. (also a reason why they are not a threat to #XRP)”.
JP Morgan announced its entry into the cryptocurrency range with JPM Coin on February 14th. JPM Coin is a stablecoin whose use is initially intended solely for the immediate settlement of major institutional clients.
“Everyone will be in crypto. JPM will eventually have to use crypto”
Although there is still no widespread acceptance of cryptocurrencies, the introduction of cryptocurrencies seems to be increasing day by day. This development is linked on the one hand to the volatility of prices and on the other hand to the need for improvements in underlying technologies and regulatory barriers.