Traditional anti-crypto finance: Existential implications according to CZ

Traditional institutions proactively reduce exposure to cryptocurrencies. This is due to the collapse of the ecosystem having taken place in 2022. Changpeng Zhao (CZ) believes that this decision could have a negative impact on traditional financial players.

A loss of investor confidence

The downfall of major crypto firms like FTX and Terraform Labs has crypto investors worried. Thus, the traditional market is forced to re-evaluate its methods to enter the crypto sector. Indeed, the reluctance of traditional finance players is acting as a deterrent when it comes to crypto adoption in the short term.

CZ instead thinks it’s a move that could backfire on mainstream players for the next two decades. Indeed, the latter argues that traditional players who opt for the crypto downturn will regret it. These will be placed far behind the adoption curve and this will set the industry back a few years. This may involve a very slow bull run, even if it is constant.

Zero tolerance for CZ

Amid growing accusations of insider trading, CZ signals the urgent need for a zero-tolerance policy. This requires subjecting each employee in the sector to a 90-day withholding on all investments he makes. Binance executives must report all trading activity on a quarterly basis.

Note also that with the evolution of new technologies, it is impossible to do without cryptos today. Proponents of traditional finance who oppose the latter, instead face a considerable downfall. This is why it is important to fight them so as not to plunge the world economy into nothingness.

Certainly the fall of these cryptos is a risk for several companies. However, this does not justify this reluctance towards the latter. Because they are the future of the global economy.

CZ is therefore right to argue that traditional anti-crypto finance faces its own realities today. Instead of fighting these cryptocurrenciescompanies would benefit from finding ways and means to sustain them.

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