Changpeng Zhao, the CEO of the cryptocurrency exchange Binance, deviated from the larger cryptocurrency community and welcomed the large institutions curating their own digital assets. In a recent tweet, CZ stated that JPM Coin and the Facebook coin will further the adoption drive for the collective industry.
Prior to his affirmation, the Binance CEO did admit that his opinion on such a contentious matter would be “unpopular”. According to him, banks and tech-giants like JP Morgan and Facebook can do as they wish as long as their intentions are not harmful. He also added that any form of cryptocurrency adoption would be beneficial for the larger community.
His tweet stated:
“Unpopular opinion: JPM/FB coins.
In a decentralized world, anyone can do as they please (within limits, so long as they don’t hurt others). The more people adopt
#crypto, the better.
How well will they do? Well, let’s wait and see.”
CZ’s tweet was in reply to an article that spoke about JPM Coin’s introduction as an achievement of marketing or engineering. JP Morgan’s stablecoin was created specifically to be an internal payments tool, allowing easy cross-border transactions and administrative transfers. However, the CEO of the bank, Jamie Dimon, known for his anti-Bitcoin stance, also stated that JPM Coin could be used in external retail payments.
Facebook has also been working on a digital coin primarily meant to be positioned on their messaging application WhatsApp. The Facebook coin would exist on a computer network, decentralized from the company, and can be sent via their messaging application between users instantly.
Other messaging giants that are also mulling a native digital coin are Telegram, Signal, Japan’s Line and South Korea’s Kako, along with China’s WeChat which already boasts a popular internal payment solution.
Despite the backing of a crypto heavyweight like Zhao, the overarching community is not a fan of the JPM Coin or the Facebook coin. In the recently held Hybrid Summit, Charles Hoskinson, the co-founder of Ethereum and creator of Cardano [ADA] called JPM Coin an “abomination of a concept”.
Hoskinson stated the JPM Coin was an example of the dying embers of an industry which is desperately trying to prove its relevance in a changing technological and financial world.
Brad Garlinghouse, the CEO of Ripple, stated that the JPM Coin “misses the point”, and added that a cryptocurrency backed by fiat was a “liability”. Garlinghouse also documented his criticism against cryptocurrencies launched by banks in a 2016 article titled “The Case Against BankCoin”.
CZ replied to nay-sayers questioning his opinion by stating:
“Don’t buy them if you don’t like them. No one is forcing you to.”
Some cryptocurrency proponents did align their views to that of Zhao’s, adding that if notable companies like JP Morgan, Facebook and Telegram were looking to mimic the cryptocurrency industry, they must be doing something right.
Justin Sun, the CEO of the Tron Foundation, replied to CZ’s tweet, stating:
“Totally agree. The more, the better.”
Renko, a crypto enthusiast and Twitter user, laughed off the proposition:
“JPM coin??? You do realize they just want to keep in control?
Matt44, another Twitter user, commented:
“I believe its a part of this evolution. Same like history with fiat. Crypto must evolve to the point where people will understand and rather to use only the decentralized ones.”
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