Bitstamp US CEO Says Proof-of-Reserves Are Key to Regaining Trust in Exchanges

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Robert Zagotta, head of the US division of crypto exchange Bitstamp, has said that the Proof-of-Reserves (PoR) procedure is able to restore the trust of retail investors in trading platforms.

According to him, PoR provides clients with more information about how centralized platforms manage clients’ assets.

He has said:

“On the one hand, the way many exchanges work is rather opaque. On the other hand, blockchain technology creates the opportunity for radical transparency. PoR will allow clients to see that the assets on the exchange exceed its liabilities.”

He has also admitted that the current method is “not perfect” and is nothing more than a “snapshot.”