According to Binance CEO, Changpeng Zhao, scalability-related issues are currently curbing the mass adoption of crypto.
CZ is supporting new Visa rival
He’s supporting a blockchain startup that could very well rival Visa.
“The lack of valuable solutions and good user experiences of blockchain-based technologies are caused by its limited scalability possibilities which have been a major hurdle towards unlocking its significant adoption potential to date,” CZ said.
Zhao selected Celer Network which is a scalability solution as the next project for the company’s venture capital arm, Binance Launchpad.
CZ said that Celer Network could deal with these challenges “with the early demonstrations of its sustainable crypto economics construct and layer-2 blockchain architect powering it.”
The announcement also reveals that Celer can address some fundamental criticisms of blockchain technology.
These include being slow and sluggish and not ready for the prime time like Visa which is able to handle substantial transaction volumes.
The corporate boycott against Visa
Speaking of Visa, there’s a recent corporate boycott against it.
Kroger supermarket giant which is the fourth largest private employers in the US has expanded its ban on Visa credit cards due to extremely high fees.
Mike Schlotman, Kroger’s chief financial officer, said: “We’re not going to stand for these high fees.”
He also said, “Visa has been misusing its position and charging retailers excessive fees for a long time.”
Visa is actually due to increase fees for the banks processing card payments on behalf of merchants in April.
Morgan Creek Digital CEO Anthony Pompliano said that he had contacted Kroger to discuss implementing new payment options that are far more cost-effective: cryptos.
The Ripple community also saw the occasion and suggested that XRP is a better choice because the Lightning Network is not quite ready.
Ripple has been trying hard lately to enhance the adoption of its products, especially XRP.