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Binance's CZ Takes Dig At Traditional Banks With 'Crazy Idea:' Proof Of Reserve

Published 13/03/2023, 05:05
© Reuters.  Binance's CZ Takes Dig At Traditional Banks With 'Crazy Idea:' Proof Of Reserve
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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.

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