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Binance CEO CZ Ridicules Troubled US Financial Institutions

Published 03/20/2023, 10:10 AM
Updated 03/20/2023, 10:30 AM
© Reuters Binance CEO CZ Ridicules Troubled US Financial Institutions

  • “They buy debt, we buy crypto,” Changpeng Zhao said after buying $1B Bitcoin.
  • The Binance CEO said, ‘No one can print Bitcoin out of thin air.’
  • Bitcoin has hit a nine-month high as the US banking sector battles a liquidity crunch.

Changpeng Zhao (CZ), the CEO of Binance, continues to deride the financial institutions of the United States as they struggle to maintain stability amid threats of hyperinflation following the implosion of two prominent banks in the country.

“They buy debt, we buy crypto,” Zhao tweeted on Monday, recalling an earlier move to convert $1 billion of a fiat-backed stablecoin to other native cryptocurrencies, including Bitcoin (BTC), Binance Coin (BNB), and Ethereum (ETH).

On March 12, the US government closed Silicon Valley Bank (SVB) and transferred the remains to the Federal Deposit Insurance Corporation (FDIC). Given that numerous tech firms have exposure to SVB, Zhao announced the following day that Binance would convert its $1 billion Industry Recovery Initiative funds from the US dollar-backed stablecoin, BUSD, to native crypto.

In a separate conversation, CZ lauded the Bitcoin technology’s core feature that makes it resist inflationary pressures while criticizing traditional fiat currencies as lacking the trait. “No one can print Bitcoin out of thin air,” Zhao tweeted, adding, “mining is a feature.”

The Binance CEO expressed the sentiment last Friday after multiple reports confirmed that the US Federal Reserve (FED) injected $300 billion into the financial system to bail out the struggling banks.

Zhao later said, “Bitcoin is volatile, but it never needed a bailout.” Michael Saylor, the chairman of MicroStrategy, reinforced Zhao’s comment by saying, “volatility is vitality.”

Interestingly, the price of Bitcoin has hit one of its highest points in nine months as the US banking sector battles a liquidity crunch. “I didn’t see the ‘Bitcoin is not a store of value’ narrative in the past week,” the CEO teased.

The post Binance CEO CZ Ridicules Troubled US Financial Institutions appeared first on Coin Edition.

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