Coinbase Ditched Zcash And Hereâ€™s The Real Reason Why
Coinbase ditched the privacy-focused cryptocurrency Zcash just a few days ago unexpectedly and in todayâ€™s altcoin news we find out why.
The coinbase users in the UK got the announcement a few days ago saying that their Zcash holdings will have to be converted to the sterling or to other cryptocurrencies. The Barclays UK-based banking giant severed the relationship with Coinbase UK and the exchange platform is now cooperating with ClearBank who demanded from the exchange Zcash to be delisted. The decision to give Zcash the kick raised questions about how this decision will affect other privacy-focused cryptocurrencies. The Editorial Director for the American Institute for Economic Research Jeffrey Tucker commented on the split saying that this created even more problems for Coinbase and Zcash itself:
Â â€œAnother solution for moving from Coinbase crypto to cash and back again will emerge. At the same time, it is not getting easier for crypto banking institutions like Coinbase. It is getting harder. Keep in mind that Coinbase is a financial intermediary itself, of the very type that crypto was supposed to make unnecessary.â€�
Instead of individuating the banking processes, the crypto market developed a mediated token market. This according to Tucker led to requiring a new layer of onramps and off-ramps. The reason why Coinbase ditched Zcash is now clear but still confusing for many users. Tucker also commented:
Â â€œThere is a growing consensus that traditional Bitcoin, which enjoys a 65% market domination, is not suitable as a means of exchange. Other tokens might benefit from this shift. But the market is extremely crowded and will continue to shake itself out in the coming years.â€�
As we read previously in the latest cryptocurrency news, Zcash is accepted and embraced by holders of its optional privacy features. However, there have been some concerns about the so-called anonymous token not really passing the regulatory checkpoints in the United Kingdom. Now, all of the holders of the privacy-focused Zcash cryptocurrency who used the Coinbase UK platform, have until August 26 to convert their holdings into another crypto or run the risk of having them forcibly converted to the sterling pounds as reported.
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