Binance CFO Skeptical of Facebook’s Cryptocurrency

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The CFO of one of the world’s largest cryptocurrency exchanges, Binance, Wei Zhou, told Yahoo Finance UK on April 26, 2019, that he suspects that Facebook is building a closed cryptocurrency ecosystem that will “wall off other people from coming into it.”

Facebook Defies Crypto Ethos

Facebook’s plan to launch its own cryptocurrency has surely not struck the sweet chords for all the stakeholders of the crypto industry.

Mark Zuckerberg has had a poor reputation regarding user data security and running his company in a manner where only one person makes all decisions. This reasons for Wei Zhou’s skepticism about the social media platform’s plans to launch its cryptocurrency and build an ecosystem surrounding it.

Seemingly pointing out the charges filed on Facebook in 2018, Wei Zhou stated:

“One of the key things that we’ve seen is that the blowback against Facebook is it’s not a community-driven organization. Key decisions are made by one person.”

He added that the thesis behind tokens and blockchain, in general, is that it is an open system that allows everyone to use it if they can spend the time to understand the technology. However, he believes that Facebook is likely to oppose that notion and create an isolated system.

Facebook’s Crypto Plan

On February 28, 2019, The New York Times reported that they had interviewed five people closely related to Facebook’s blockchain and cryptocurrency team who signaled that the team might launch its product in the first half of 2019.

Further proving the claims, Nathaniel Popper, The New York Times reporter behind the previous report, tweeted on April 8, 2019, that Facebook is looking for VC firms to invest in their cryptocurrency project. He also pointed out that they are considering to raise as much as a billion dollars and are “talking about using the money as collateral for its cryptocurrency. Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts.”

While none of these reports, in any manner, even slightly prove the claims made by the Binance CFO, anything specific still cannot be concluded given the secrecy with which Facebook has been operating on its blockchain and cryptocurrency project.

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