Zcash parent company Electric Coin Company (ECC) has clarified the controversy regarding its application for the PPP US government loan.
Newslogical had reported earlier on the mounting criticism within the cryptocurrency space. Popular bitcoin analyst Peter Todd had tweeted about the application of ECC for the payroll and questioned the reason behind the loan.
In a series of Tweets today, EEC clarified the entire situation and admitted that the company had filed for a loan from the government. However, it insisted that the reason for the loan was to protect its employees against the financial uncertainty of the Covid-19 pandemic.
While clarifying that the loan was for ECC employees that are based in the US, the company said other members across the world were paid via its native cryptocurrency Zcash (ZEC). ECC assured Zcash community of its commitment towards transparent use of funds.
EEC also highlighted that it was unaware of the error that occurred in the application which stated that the firm was owned by a Hispanic female and they would be working with their bank to rectify the error.
PPP Loan Caused Controversy in Recent Days
Notable crypto personalities have criticised the decisions of several crypto-related firms to receive Covid-19 loans from the US government.
It was reported that over 70 crypto firms had received loans with top platforms like Shapeshift and ConsenSys receiving several millions of dollars. Peter Todd was one of the critical parties and Bitcoin maximalist Max Keiser was also vocal on his displeasure about the approach of crypto companies.
Bitcoin critic Peter Schiff also joined with his belief that the firms don’t need the loan due to the amount of funding available to them. He also feels that it is a way for the firms to artificially inflate their value during this Covid-19 period.