CZ: Perhaps banks should use Merkle Trees for reserve proof? dForce founder: They already have the Fed as collateral.
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"Have these banks undergone audits, right? Perhaps banks should use Merkle Trees for reserve proof?" CZ said.
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CZ Has Something to Say
Following numerous bank failures, CZ believes that based on the principle of transparency, even if a bank's reserves do not reach 100%, users should still be informed of the proportion.
However, dForce founder Yang Mindao disagrees with CZ's statement, stating that banks are already guaranteed by the Federal Reserve, and technical audits are irrelevant, creating significant moral risks with such a setup.
Furthermore, CryptoQuant CEO Ki Young Ju questions whether the FED and central banks will provide reserve proof when issuing CBDCs.
"If they don't, they are hypocrites," Ki Young Ju remarked.