Binance CEO Changpeng Zhao has a lot to say about how the cryptocurrency industry will develop, and this time he offered an opinion on whether banks would be required for transfers in the future.
Zhao was tweeting in response to a statement by Global Head of eCommerce Solutions at JPMorgan Chase, Ron Karpovich, in an interview with CNBC’s Squawk Box.
Karpovich said that banks would still be involved at some point in the flow of funds, even with the advent of new technology:
Well, ultimately behind the scenes, they are going to have to use a bank to move funds. There’s more partnership instead of competition in that space.
Zhao took to Twitter to state his opinion, in which he rejected the idea that banks are a necessary stakeholder in the system:
Now, we can't agree. Many (not so small) businesses already don't use banks, and they work just fine.
JPM just don't get it, yet. (also a reason they are not a threat to #XRP)
— CZ Binance (@cz_binance) March 20, 2019
Karpovich had said in the interview that JPM Coin is important as it will improve payments infrastructure for the company:
I think there’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous versus using the technology to enhance your payments infrastructure. We look at the technology as being a means to doing things faster and cheaper: every CEO would like to make things faster and cheaper. So from that standpoint I think it represents a buy into the concept of using blockchain.
Zhao had earlier said that, with respect to big players like JP Morgan Chase and Facebook considering crypto, “the more people adopt crypto, the better.”
This view that established entities working with crypto is good because it may bring exposure and adoption is not shared by everyone.
Zhao, who is supportive of Ripple’s prospects, does not see JPM Coin threatening XRP. Ripple CEO Brad Garlinghouse and Abra CEO Bill Barhydt have said that the JPM Coin would offer no threat to the XRP token or the crypto ecosystem because its use case isn’t very logical.