Brian Armstrong, the CEO of the largest US
cryptocurrency exchange, Coinbase, recently spoke about his troubles with the
US banks. Armstrong used his Twitter account to complain about two popular fiat
payment apps which denied him service after he attempted to make a payment to a
Armstrong’s frustration does not come from the
fact that he was declined service, but from the fact that something like this
happened in the US, where such services are among the best. If something like
that can happen in the US, Armstrong suspects that the rest of the world, which
lesser-developed countries must have it much worse.
He continued down the same thread, stating that bad customer experiences are often caused by regulatory restrictions. Regardless of the fact that companies could probably eliminate such difficulties if it were up to them, they need to follow an established protocol and comply with the regulators’ rules.
He finally reached his point by stressing that
cryptocurrencies do not face such difficulties. He admits that they are still
very young, and they are currently facing their own issues. However, the fact
that they are young and that their systems can be improved means that they will
likely be a much better alternative in the future.
Ironically, Coinbase caused
similar issues to its own clients
Moneygram, a remittance service backed by the
crypto startup Ripple, offered Armstrong a promo code in order to promote their
services to Coinbase CEO’s Twitter followers, although it is unclear whether he
accepted the offer.
He only mentioned that there is a lot of room
for innovators to come up with better alternatives to traditional systems, even
though there are many challenges along that path.
Of course, there were some who found
Armstrong’s statements a bit ironic, particularly since Coinbase itself is
rather strict when it comes to regulatory compliance. The exchange always
wanted a good relationship with authorities, but regulatory compliance caused a
lot of negative experiences with the exchange’s services, as well.
The exchange’s customer service was also often criticized for responding poorly to customers, not to mention that the exchange did not let users access their BCH coins for months.