Changpeng Zhao, , has shared a contrarian opinion about two controversial crypto projects. He argues that upcoming from JP Morgan and Facebook have every right to exist alongside decentralized projects—an idea that not everybody agrees with.
Unpopular opinion: JPM/FB coins.
In a decentralized world, anyone can do as they please (within limits, so long as they don’t hurt others). The more people adopt , the better.
is . Welcome!
How well will they do? Well, let’s wait and see.
— CZ (@cz_binance)
The Controversial Coins
Both projects are controversial. is an upcoming stablecoin targeted at banks and financial institutions, and its ties to traditional finance could help it gain . However, it has also been widely derided as a more restrictive and centralized version of . Even ’s own Brad Garlinghouse has the project.
Meanwhile, Facebook is said to be a and peer payment tool that will be integrated with its subsidiary app WhatsApp. Facebook’s project is controversial because it will probably resemble a centralized PayPal competitor that is powered by crypto—not a decentralized, free-moving .
There is also another issue at stake: both companies have demonstrated famously anti-crypto attitudes in the past. JP Morgan CEO Jamie Dimon has repeatedly condemned , and Facebook’s crypto ad ban ICOs. It is easy to think that both companies support only when it suits them.
Defending Centralization
Although both projects have plenty of opposition, JP Morgan and Facebook are not without their defenders. Institutional finance and payment processing are two routes by which tech could break into the mainstream. Both companies are in a good position to facilitate crypto , which Zhao is in favor of.
Zhao nobody is being forced to buy coins that they don’t like. Indeed, purchasing the coins may not even be a universal option. Facebook’s project might initially be targeted only at . Meanwhile, JPM Coin is explicitly not for consumers, meaning that some of its critics may be experiencing sour grapes.
Binance’s Role
itself is currently straddling the line between centralization and decentralization. The company currently runs the centralized crypto exchange in existence. However, it has also branched out with the launch of Chain, which powers its new .
It’s not clear what role will play in relation to the two upcoming coins. Both projects are in their early stages. However, when asked how users will swap one coin for another, Zhao “ will be in there somewhere.” Clearly, will not shy away from either project.
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Published at Tue, 12 Mar 2019 05:02:36 +0000
