TLDR

  • Binance co-founder CZ stated that Wall Street’s concerns should be directed at AI, not cryptocurrency.
  • IBM’s stock price fell more than 13% after AI firm Anthropic announced its Claude AI can update legacy COBOL systems.
  • CZ’s remarks were aimed at traditional finance leaders such as JPMorgan’s Jamie Dimon, a long-time crypto critic.
  • Coinbase CEO Brian Armstrong has also commented on traditional finance’s opposition to crypto’s disruptive potential.
  • Citrini Research released a report describing a hypothetical 2028 situation where AI leads to widespread white-collar job losses and an economic downturn.

CZ Says Wall Street’s Real Threat Is AI, Not Crypto, as IBM Stock Drops 13% After Anthropic’s Claude Announcement

This week, Binance co-founder Changpeng “CZ” Zhao criticized traditional finance, asserting that Wall Street has been concentrating on the incorrect danger.

His statement followed a more than 13% drop in IBM’s share price on Monday. The decline occurred after AI company Anthropic claimed its Claude tool could assist businesses in updating legacy systems programmed in COBOL.

COBOL is an older programming language that remains in use by numerous major banks and corporations. The modernization of these systems is a service that produces billions of dollars in annual revenue.

Anthropic’s announcement implied that AI could now perform this work more quickly and at a lower cost. This alarmed investors, causing a sharp decline in IBM’s stock.

On X, CZ posted, “Wall Street was worried about crypto… when they should be worried about AI.” The tone was sarcastic, targeting critics from traditional finance who have frequently warned about the risks of cryptocurrency.

Wall Street’s History With Crypto Criticism

JPMorgan Chase CEO Jamie Dimon is among the most prominent crypto skeptics on Wall Street. He has consistently voiced his doubts, even as JPMorgan has quietly developed its own infrastructure related to cryptocurrency.

Coinbase CEO Brian Armstrong has previously stated that certain players in traditional finance are unable to cope with the disruption that crypto introduces to the sector.

CZ’s post is part of the continuing friction between cryptocurrency proponents and established financial institutions.

AI Now in the Crosshairs

Although cryptocurrency has been the primary focus of Wall Street’s apprehension for years, AI is now attracting more notice as a potential disruptor of conventional business models.

Claude is an AI assistant designed to manage complicated tasks. The company’s assertion that it can streamline COBOL modernization poses a direct threat to a key revenue source for IBM.

IBM has not issued a public response to Anthropic’s specific claims regarding COBOL.

On Sunday, Citrini Research published a note that presented a hypothetical scenario for June 2028. In it, automation driven by AI has resulted in mass unemployment for white-collar workers, reduced consumer spending, and a wider economic contraction.

While the note was speculative, it indicates increasing unease within financial markets about the potential consequences of widespread AI adoption for employment and the economy.

PANews shared and amplified CZ’s post on February 24, highlighting the link between the drop in IBM’s stock and the announcement from Anthropic.

IBM’s shares were already experiencing downward pressure prior to Monday’s significant drop. The 13% single-day fall was one of the stock’s more substantial declines in recent months.

The latest development in this story is Anthropic’s Claude tool focusing on COBOL systems.