TLDR
- Former Binance chief CZ argued that artificial intelligence poses a greater threat to Wall Street than cryptocurrency
- IBM shares plunged more than 13% following Anthropic’s announcement that Claude AI can modernize COBOL-based legacy systems
- The remarks were aimed at traditional finance leaders like Jamie Dimon of JPMorgan, who have consistently criticized cryptocurrency
- Brian Armstrong, Coinbase’s CEO, has previously echoed similar sentiments regarding traditional finance’s pushback against crypto innovation
- A hypothetical 2028 scenario from Citrini Research outlined potential mass white-collar job losses and economic decline driven by AI automation
Former Binance Leader CZ Points to AI as Wall Street’s Primary Concern Following IBM’s 13% Stock Decline
Changpeng “CZ” Zhao, who co-founded Binance, directed pointed criticism toward traditional financial institutions this week, asserting that they’ve been preoccupied with the incorrect disruptor.
His remarks followed Monday’s steep decline in IBM shares, which fell over 13% after Anthropic, an artificial intelligence firm, announced that its Claude platform could assist enterprises in updating legacy infrastructure built on COBOL.
COBOL represents an aging programming language that remains prevalent across numerous major financial institutions and corporations. The modernization of these systems represents a multi-billion-dollar revenue stream for IBM annually.
The announcement from Anthropic implied that artificial intelligence could accomplish this modernization work more rapidly and cost-effectively. This revelation alarmed investors, triggering IBM’s substantial stock decline.
On X, CZ wrote, “Wall Street was worried about crypto… when they should be worried about AI.” His sarcastic tone targeted traditional finance critics who have persistently raised alarms about cryptocurrency dangers.
Traditional Finance’s Track Record of Crypto Skepticism
Jamie Dimon, who leads JPMorgan Chase, stands among Wall Street’s most prominent cryptocurrency doubters. He has consistently voiced skepticism regarding Bitcoin, despite JPMorgan’s quiet expansion into crypto-related services and infrastructure.
Brian Armstrong, who heads Coinbase, has previously stated that certain traditional finance entities struggle to accept the disruption cryptocurrency introduces to their industry.
CZ’s statement adds fuel to the persistent friction between cryptocurrency proponents and established financial powerhouses.
Artificial Intelligence Emerges as New Disruptive Force
While cryptocurrency has dominated Wall Street’s concerns for several years, artificial intelligence is increasingly emerging as a potential threat to conventional business frameworks.
Anthropic’s Claude represents an AI-powered assistant designed for handling sophisticated tasks. The firm’s assertion that it can streamline COBOL modernization directly challenges a fundamental revenue source for IBM.
IBM has remained silent regarding Anthropic’s specific assertions about COBOL capabilities.
On Sunday, Citrini Research released a note presenting a speculative scenario dated June 2028. Their projection depicted AI-powered automation triggering widespread unemployment across white-collar professions, declining consumer expenditure, and extensive economic downturn.
While hypothetical in nature, the analysis mirrors increasing unease within financial sectors about potential consequences of widespread AI implementation on employment and economic stability.
PANews amplified CZ’s message on February 24, highlighting the correlation between IBM’s stock deterioration and Anthropic’s revelation.
IBM’s shares had experienced downward momentum even before Monday’s dramatic fall. The 13% single-session plunge ranked among the most significant movements the stock has experienced in recent periods.
Anthropic’s Claude platform focusing on COBOL infrastructure represents the latest chapter in this unfolding narrative.
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