Binance CEO: Billion-Dollar Crypto Transfers Expose Pitfalls of Banks
Binance CEO Changpeng “CZ” Zhao is hailing cryptocurrency speeds and low costs as Bitcoin pioneer Charlie Shrem says the $600 transaction fee for a recent BTC transfer of $1 billion was too high.
$600 to move $1B within minutes. The funny thing is, they overpaid by a large margin 😂. This is #bitcoin https://t.co/mrGJSk0sdU
— Charlie Shrem (@CharlieShrem) September 6, 2019
The massive transfer worth $1,018,147,922 was made on September 5th and created the richest non-exchange address.
Responding to Shrem’s tweet, CZ argues,
“[The billion dollar Bitcoin transaction is] super cheap. Imagine walking into a bank and saying ‘I need to transfer $1b, I want it processed in the next 10 minutes, and I am willing to pay $700 in fees.’”
CZ points out that Binance did a similar transaction in June. The exchange transferred 32,888,888 Binance Coins worth $1.2 billion and paid only $0.015 in fees. He says the transaction was confirmed in 1.1 seconds.
Transferring a billion dollars through the traditional banking system would be more expensive and would take considerably longer than a few seconds. Traditional bank transfers, for example, typically take upwards of two days and tack on hefty currency conversion fees and other hidden charges.
Says CZ,
“If you walk into a bank saying you need $1b processed in the next 10 minutes, the police will be there before anything else.”
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