of the USAOne of the largest banks, Bank of America ( BAC), noted that cryptocurrency exchanges’ proof of reserve will not be sufficient.
Popular cryptocurrency exchange of FTX The crash shook the entire industry. The evaporation of a billion-dollar asset has begun to turn investors away from cryptos. Exchanges that want to instill confidence in crypto investors and revive the industry again took action. BinanceCEO Changpeng Zhao ( CZ ), stated that the exchange will now share its assets transparently. Other cryptocurrency exchanges were also involved in this move. However, Bank of AmericaHe thinks all these are hasty decisions.
Bank of America Links Its Asset Shares to Building Confidence
Global banking and finance company Bank of America ( BAC), viewed the asset sharing of cryptocurrency exchanges as a hasty confidence-building move.
The bank noted that there was too much lack of evidence of reserve shared by exchanges. BAC, currently Merkle TreesHe stated that proof of existence was made through him. Merkle TreesMaking a statement about the bank, he stated that this is a more useful method.
Manipulation reasons were included in the bank’s consideration of the lack of evidence of existence. Problems such as showing assets at a fixed time, transferring just before taking a snapshot were highlighted.
Finally BACHe argued that regulations should come quickly.
