Perhaps the best thing about those in the cryptoverse is how ardently and strongly they support every aspect of it without fail. The crypto community is growing fast and so are it’s ambitions. One of those advocates is crypto exchange Binance CEO, Changpeng Zhao.
Zhao recently tweeted that many smaller businesses were working fine without banks and that a crypto future is inevitable. The tweet was meant as a response to an interview of Ron Karpovic who is a JP Morgan executive.
In an interview with CNBC’s Squawk Box, Global Head of eCommerce Solutions at JPMorgan Chase, Mr. Karpovich was of the opinion that banks were not as obsolete as the cryptoverse would like to think and added that they pretty much do the same job as crypto but at a cheaper cost.
“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. When it comes to margins and capabilities, payments is never something that grows in margin. Nobody wants to pay for a payment. That’s one of the hardest parts of this process: you have limited resources and capability to sell; so you need highly efficient and large players. There’s so much consolidation in the payment space, mainly because there’s a requirement to just have good efficiency in your ability to make payments.”
When asked whether long time crypto critic and naysayer CEO Jamie Dimon was now finally a “convert” after JP’s decision to make the crypto plunge. To this Karpovich said,
“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 of doing things faster and cheaper. Every CEO would like to make things faster and cheaper. So from that standpoint, I think there’s a buy into the concept of using blockchain. We are big players in the space. We created Quorum… We’ve also run the Interbank Information Network, which is a means for banks to connect to each other over the blockchain to share background data.”
However, Changpeng Zhao was not having it and offered his on take on Karpovich’s opinion on the cryptoverse when he tweeted,
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
Whether or not Zhao’s strong resolve is what the future holds is yet to be seen, however it does seem like more and more big players are dipping their toes into the crypto sea for a taste of their own!