The doublethink of “CZ”, the cryptically-monikered founder of Binance (“The great crypto crackdown”, Big Read, July 3) neatly highlights the uncomfortable cognitive dissonance at crypto’s heart. He says “ . . . an entity . . . a headquarter, . . . a bank account. All of those things don’t need to exist for blockchain companies”, but separately he adds “we take our legal obligations very seriously and have worked hard to build a robust compliance programme”.
Cryptocurrencies have little real-world utility or intrinsic worth, and essentially “exist only to exist”. The inconvenient truth is that cryptocurrencies, and bitcoin in particular, largely achieve their volatile investment and trading “value” exclusively from speculation. ICT professionals well know that it is a dangerous nonsense to rely on the “decentralised trustless consensus mechanism” of blockchain distributed ledger technology to replace the secure practical market economics of trusted third parties operating within, and answerable to, the rule of law.
A CryptoSure Trust Model has recently been put forward and “CZ” should consider putting his crypto wealth, and influence with cryptonauts, in support of CryptoSure as a way perhaps of “taking his legal obligations very seriously”.
Chairman, Castell Consulting
Witham, Essex, UK