Changpeng Zhao: Blockchain is an Open Technology Banks Can Use

Binance founder Changpeng Zhao has described blockchain as an open technology that banks can utilize, rather than a proprietary tool confined to the cryptocurrency sector. On October 18, Zhao posted on social media questioning why some people believe banks should fear or be protected from blockchain adoption.

According to BlockBeats, Zhao explained that blockchain offers a faster, cheaper, and more verifiable method for transferring value compared to traditional systems. He stressed that blockchain is an open technology accessible to all, including banks, which can adopt it in the same manner as other industries.

Blockchain, designed as a distributed ledger allowing multiple participants to verify transaction records without relying on a single central authority, has features Zhao believes could improve speed, cost, and verification processes. However, he noted that for banks to implement blockchain, they must also meet existing regulatory requirements such as customer identification, anti-money laundering protocols, dispute resolution, and data privacy standards.

Zhao previously proposed asset tokenization as a bridge between financial institutions and global investors. His latest comments aim to position blockchain not as an opposing force to traditional finance but as a technology that can be integrated into banking systems. No specific bank adoption plans, service launch dates, or regulatory changes were mentioned in his statement.