This crypto platform plans to buy banks

News equipment This crypto platform plans to buy banks

Despite the cryptocurrency winter following the fall of Bitcoin, the players of the cryptocurrency industry continue to rise in times of crisis. One of the largest platforms for buying and reselling virtual currency even plans to buy real traditional banks.

Bitcoin and crypto against a bank?

If the period does not seem favorable for the development of the cryptocurrency sector due to the decline of Bitcoin since November 2021, this latest announcement seems to indicate the complete opposite.

Indeed, Binance, the crypto colossus, plans to buy traditional banking institutions. Founded in 2017 by Changpeng Zhao, Binance has grown exponentially over the past few crypto cycles. Today, the company is considered the largest cryptocurrency platform.

But the digital asset company doesn’t intend to stop there in its climb…

Last Wednesday, during an interview reserved for the financial media Bloomberg, Changpeng Zao (CZ), the head of Binance, spoke about his investment prospects for the coming years.

With a budget of one billion dollars, the CEO plans to buy real banks:

“There are people who have several types of local licenses, traditional banks, payment service providers, even banks. We are looking at these things,” the Biannce boss said in an interview at the Web Summit conference in Lisbon.

A common interest in crypto and banking?

If the news may seem surprising, the idea has been floating around among the crypto giants for some time. In July 2021, the FTX platform was already talking about buying banking institutions. Similarly, cryptocurrency exchange BitMEX had also announced a possible acquisition of a German bank in early 2022.

This kind of announcement repeated by many crypto players confirms the existence of a synergy between different parties (banks and crypto platforms).

“What we’ve found is that when banks work with us, we attract so many users to them, to the point where the valuation of the bank grows exponentially. So why not just invest in these, to capture some of the upside capital ?” explains Changpeng Zao (CZ), CEO of Binance.

From this perspective, Binance could thus become a real virtual bank – a comparison that seems realistic when we know that Binance already offers crypto payment cards and other services modeled on the traditional banking system.

These new ambitions demonstrate a reversal of the situation since a few years ago, banks were leery, even hostile, of virtual currencies – even going so far as to stop buying crypto for their customers.

If Satoshi Nakamoto, the mysterious inventor of Bitcoin, is still alive, then he can boast that he won his bet: that of creating an alternative to the banking system. However, the news may not necessarily please users of Bitcoin and other decentralized cryptocurrencies… Indeed, since Binance is owned by one entity, the decentralized aspect is no longer in play, 13 years after the creation of Bitcoin.

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