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Binance CEO CZ has different opinion; thinks Blockchain Technology adoption may protect Banks from disruption

The profitability of traditional banks has been threatened by persistently low interest rates, weak credit growth, and growing competition in retail from FinTech and platform-based rivals. As a result, banks have had to adapt their business models.

The role of the intermediary is changing as a result of the use of algorithms, big data, blockchain, peer-to-peer lending, and crowdsourcing. Banks now face competition from other intermediaries in their core business. Although digital disruption is changing the way services are provided in the industry, it may also be addressing some of the prior issues with market competitiveness, such as high switching costs and/or high transaction costs.

CZ, the CEO of Binance has a different approach and believes could help address the disruptions being faced by Banks in recent times. CZ revealed his opinion in a tweet saying if banks could adopt Blockchain Technologies they may be protected from such disruptions. The tweet reads:

“I personally hold the opposite view, of course. I think the best way to protect banks from disruption is to let them adopt blockchain technologies as early as possible. Again, I could be wrong here.”

Guillermo Gonzalez replying CZ in a comment said:

“Blockchain is very old technology (>40 years), it’s amazing, but it doesn’t have many use cases, actually there’s only one real use case, and that’s a decentralized ledger, sounds easy right? well, after many years and several tries, we got #Bitcoin    and you can’t replicate it.”

A screenshot of the tweet replying CZ

All banking sector indicators are positively impacted by interest rates, however this association becomes weaker as interest rates rise, demonstrating a concave relationship between interest rates and banking sector growth. Additionally, the empirical findings show that interest rate changes negatively affect the majority of indices of banking sector development (BSD), indicating that the banking sectors of emerging nations are susceptible to interest rate risks. Additionally, economic growth rates have a favorable impact on all measures of the banking sector’s indicators, albeit this association lessens as income levels rise, indicating a nonlinear relationship.


Written by T.I Ukende

T.I Ukende is a professional writer and ICT consultant. He has written many evergreen articles for Benuecast blog, classicgist, ellabase and many others before birthing the newsway blog.
Newsway delivers well researched and undiluted information on business, employment opportunities, personal finance and government empowerments.

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