CZ Proposes Blockchain to Musk as a Replacement for Paper Checks

In Brief:

CZ reportedly suggested using blockchain technology to replace traditional paper checks.

The U.S. Treasury processed 116 million checks in 2024, with $25 billion in tax refunds delayed or lost in 2023.

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Binance founder CZ has allegedly proposed to Elon Musk that blockchain technology could serve as a modern replacement for traditional paper checks. The discussion comes in light of inefficiencies in the U.S. financial system, where the Treasury Department processed 116 million paper checks in fiscal year 2024. Additionally, in 2023, $25 billion in tax refunds were either delayed or lost due to expired or misplaced checks.

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The Treasury currently operates a physical lockbox network for processing tax and passport-related checks, incurring an average cost of $2.40 per check. Transitioning to a blockchain-based system could potentially save the government an estimated $750 million annually while improving transaction speed, transparency, and security.

Musk, a vocal proponent of financial innovation, has yet to publicly respond to CZ’s suggestion. However, given his ongoing interest in digital payment solutions through X (formerly Twitter), the proposal may align with his broader vision for integrating blockchain and cryptocurrency into mainstream financial infrastructure.

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