CZ Dismisses Bank Claims, Calls Out Crypto FUD

Binance co-founder Changpeng "CZ" Zhao has denied allegations that he proposed establishing a private cryptocurrency bank in Kyrgyzstan, dismissing the claims as inaccurate and emphasizing his lack of interest in operating such an institution. The controversy emerged after Kyrgyzstan's President Sadyr Japarov told state media that Zhao had visited the country in May and suggested a joint effort to create a crypto-friendly bank, later named Bereket Bank. Japarov stated that while he initially favored a state-owned bank, Zhao's preference for a private model led to the institution's formation, according to Investorempires.

CZ refuted these assertions in a post on X, stating, "This isn't correct. Not quite '4' FUD level, but still wrong. I never proposed creating a bank myself. While I support banks working with crypto generally, I have no interest in running one." He added that he did not recognize the name "Bereket Bank" and clarified that any remarks he made were general in nature, such as expressing support for "as many digital banks supporting crypto as possible", according to TradingView.

The denial followed viral reports, including a post by Coin Bureau, which falsely attributed the Bereket Bank proposal to CZ. The confusion highlights the challenges of misinformation in the crypto space, where high-profile figures' statements can be misinterpreted or amplified. CZ's response, blending humor with directness, resonated with the crypto community, prompting memes and lighthearted replies. One user joked, "Next up: CZ spotted opening a lemonade stand in Bishkek," to which CZ quipped, "I might have proposed that," as reported by Coinfomania.

Despite denying involvement in the bank, CZ has been actively engaged in Kyrgyzstan's broader crypto initiatives. In April, he signed a memorandum of understanding with the country's Foreign Investment Agency to advise on blockchain, regulation, and technology. Additionally, he participated in the National Council for the Development of Virtual Assets and Blockchain Technologies, where Kyrgyzstan announced a stablecoin pegged 1:1 to the som and plans to include BNB in a potential cryptocurrency reserve, according to Cointelegraph.

Kyrgyzstan's push to become a crypto hub is part of a larger regional strategy. The country has introduced a legal framework for virtual assets, including licensing for crypto service providers and a state cryptocurrency reserve. It also launched the USDKG, a gold-backed stablecoin, and is piloting a digital som central bank digital currency (CBDC). These moves position Kyrgyzstan as a leader in Central Asia's crypto adoption, contrasting with the more cautious approaches of neighboring countries like Kazakhstan and Uzbekistan, according to OneSafe.

CZ's denial underscores the fine line between advocacy and direct involvement in crypto infrastructure. While he supports regulatory frameworks that enable crypto-friendly institutions, he has repeatedly distanced himself from operational roles. This aligns with his broader industry stance, which emphasizes decentralization and innovation while avoiding centralized control.

As Kyrgyzstan continues to develop its digital asset ecosystem, the Bereket Bank controversy serves as a case study in the rapid spread of information-and misinformation-in the crypto sector. For now, CZ's focus remains on advisory roles and broader crypto adoption, leaving the future of Bereket Bank to unfold without his direct involvement.