This crypto platform plans to buy banks

News hardware This crypto platform plans to buy banks

Despite the cryptocurrency winter following the fall of Bitcoin, crypto industry players continue to grow 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 fall of Bitcoin since November 2021, this recent announcement seems to indicate quite the opposite.

Indeed, Binance, the colossus of cryptos, plans to buy traditional banking institutions. Founded in 2017 by Changpeng Zhao, Binance has grown exponentially during recent crypto bull cycles. Today, the company is considered the biggest cryptocurrency platform.

But the digital asset company does not intend to stop there in its ascent…

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

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

“There are people who hold certain 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 for cryptos and banks?

If the news may seem surprising, the idea has been emerging for some time among the crypto giants. In July 2021, the FTX platform was already talking about buying banking establishments. In the same vein, the BitMEX cryptocurrency exchange had also announced a potential takeover of a German bank in early 2022.

This kind of recurring announcements from multiple crypto players confirms the existence of a synergy between the 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 increases exponentially. So why don’t we just invest in these, in order to capture some of the equity upside?” explains Changpeng Zao (CZ), CEO of Binance.

From this perspective, Binance could thus become a true 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 earlier, banks were feverish, even hostile, to virtual currencies – even going so far as to prohibit the purchase of cryptos to its customers.

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

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