Binance CEO Changpeng Zhao, popularly known as "CZ," is calling on banks to provide a Proof-of-Reserve in light of the recent news of Silicon Valley Bank SIVB and Signature Bank SBNY collapse.
What Happened: CZ pondered whether banks should be using “Merkle trees” to achieve a Proof-of-Reserve, emphasizing that this would create greater transparency. He postulated that even if it wasn't 100% accurate, it would still be beneficial to know the approximate amount of reserves held.
It is worth noting that after the collapse of FTX, Binance emerged as the first major crypto exchange to introduce proof of reserves as customers sought refuge from centralized exchanges.
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Merkle trees are a type of data structure commonly used for verifying and proving the integrity of data records.
The Federal Reserve, U.S. Treasury, and FDIC on Sunday said that all depositors of Silicon Valley Bank and Signature Bank will be able to access their funds on Monday. In response to this news, the overall crypto market turned green.
Price Action: At the time of writing, Bitcoin BTC/USD was trading at $22,323, up 8.0%, and Ethereum ETH/USD at $1,595, up 7.78% in the last 24 hours, according to Benzinga Pro.
Photo by Web Summit on Flickr
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