Blockchain Cord developer Peter Todd has criticized Zcash parent firm Electric Coin Company for taking the PPP payroll loan from the US government.
In a tweet today, Todd posted an image from the US Treasury website which highlighted Electric Coin as one of the beneficiary of the PPP payroll loan.
He further questioned the rationale behind taking the loan given the fact that Zcash is a privacy token meant to help users breach government control.
His tweet generated a lot of frenzy with different crypto enthusiasts commenting on it. There was a general perception that this was not a good move for the company.
Zcash not the only blockchain firms to receive payroll loan.
Zcash was not the only blockchain to receive a loan from the US government with reports suggesting over 75 crypto platforms received between $300,000 and $1,000,000.
Furthermore a few companies received more with ShapeShift receiving $1million and $2million and Ethereum backed firm ConsenSys received around $5 million to $10 million.
It is not known the reason why these firms collected such huge amounts from the US government since they are backed by huge funds.
This brings into question the problems of whether blockchain firms are truly decentralized.
As expected there has been a bit of backlash from Bitcoin maximalist against the receiving of government loans.
Notable Bitcoin enthusiasts Max Keiser was vocal about his opposition to DLT firms accepting payroll loans from the US government. He believes that this defeats the purpose of decentralization and hopes that these projects will be gone in a few years’ time.
Notable Bitcoin critic Peter Schiff also criticized the PPP loans claiming that it was increasing the profits of companies taking them. While he reiterated that the companies don’t need the money. There will always be that grey line between blockchain projects and government influence.