Binance’s CZ Takes Dig At Traditional Banks With ‘Crazy Idea:’ Proof Of Reserve
By Benzinga
Binance CEO Changpeng Zhao, popularly known as "CZ," is calling on banks to provide a Proof-of-Reserve in light of the recent news of Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY) collapse.
What Happened: CZ pondered whether banks should be using “Merkle trees” to achieve a Proof-of-Reserve, emphasizing that this would create greater transparency. He postulated that even if it wasn't 100% accurate, it would still be beneficial to know the approximate amount of reserves held.
It is worth noting that after the collapse of FTX, Binance emerged as the first major crypto exchange to introduce proof of reserves as customers sought refuge from centralized exchanges.
All these banks are audited, right?
Crazy idea: maybe banks should do a Proof-of-Reserve using merkle trees? 🤷♂️
Even if it is not 100%, we should know the %, right? Transparency.
— CZ 🔶 Binance (@cz_binance) March 13, 2023
See More: Top Indian Apps That Give Bitcoin, NFT Rewards
Merkle trees are a type of data structure commonly used for verifying and proving the integrity of data records.
The Federal Reserve, U.S. Treasury, and FDIC on Sunday said that all depositors of Silicon Valley Bank and Signature Bank will be able to access their funds on Monday. In response to this news, the overall crypto market turned green.
Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $22,323, up 8.0%, and Ethereum (CRYPTO: ETH) at $1,595, up 7.78% in the last 24 hours, according to Benzinga Pro.
Photo by Web Summit on Flickr
