“1:1 reservation. No more problems.”

Binance Co-Founder and CEO Changpeng ‘CZ’ Zhao’s Early Morning Words in Response to the Ongoing Crisis in the U.S. Banking System — The Crisis Now Spreads Across the Ponds of Europe, UK and Switzerland is causing

CZ responds to banking crisis contagion

After fears began to spread from the crisis to three US banks last week, other banks have also begun to show signs of urgency, prompting cryptocurrency leaders like CZ to comment on the ongoing situation.

On March 16, a consortium of Wall Street banks agreed Offer $30 billion to shore up First Republic Bank after concerns began circulating that it was facing liquidity problems. The crackdown on these and other banks is causing pain to other sectors of the economy like cryptocurrencies.

On March 11, Circle, the company behind stablecoin USDC with a total reserve of $37 billion, closed its capital after a signature collapse threatened more than $3 billion held in reserves. forced to procure.

In response, the Federal Deposit Insurance Administration (FDIC) had to step in to bail out the banks last weekend. CZ and others have reiterated that they want exchanges to be regulated like banks.

“2. Don’t lend your customers money to make money. Let VCs do it.”

3. No income? Charge transparent fees for services, such as facilitating transactions (tx)

5. Transmission costs too high? Use blockchain technology to reduce costs.

Keep your business simple. ”

We deliberately left out the 4, which has become synonymous with FUD on Binance and CZ themselves.

By Jules

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