Binance CEO Changpeng Zhao Addresses The Pitfalls Of Banks
Cryptos have been building this massive aim of disrupting traditional finance services.
For instance, even if SWIFT has been used for decades by various entities, banks, and financial institutions, it became outdated.
As a result, more innovative solutions are becoming the choice of financial players these days.
Changpeng Zhao praises the efficiency of cryptos
Changpeng Zhao is praising the crypto speeds and low costs as Bitcoin pioneer Charlie Shrem said that the $600 transaction fee for a recent BTC transfer of $1 billion was way too high.
The online publication the Daily Hodl noted that this massive transfer was worth $1,018,147,922 was made on September 5th and created the richest non-exchange address.
— Charlie Shrem (@CharlieShrem) September 6, 2019
As a response to Shrem’s tweet, CZ said the following:
“[The billion-dollar Bitcoin transaction is] super cheap. Imagine walking into a bank and saying ‘I need to transfer $1b, I want it processed in the next 10 minutes, and I am willing to pay $700 in fees.’”
CZ highlighted the fact that Binance did a similar thing back in June.
The exchange was then able to transfer 32,888,888 Binance Coins worth $1.2 billion and paid only $0.015 in fees.
He says the transaction was confirmed in 1.1 seconds, the Daily Hodl reported.
The traditional banking system is outdated
The online publication also writes that transferring a billion dollars via the traditional banking system would be more expensive and would require much more time, not only a few seconds.
Traditional bank transfers need up to two days and they lack currency conversion fees and more hidden charges.
CZ said the following: “If you walk into a bank saying you need $1b processed in the next 10 minutes, the police will be there before anything else.”
The efforts to fills the gaps mirrored by the traditional banking system will definitely continue as the crypto and blockchain space evolves and the innovative developments continue.