Why Proof of Reserves alone cannot establish true trust. Proof of Reserves only shows assets at a specific point in time and does not demonstrate payment ability, liquidity, or sound governance. It is insufficient to fully assess the financial health and reliability of an institution.

There are several points that PoR (Proof of Reserves) overlooks, such as the quality of assets held, the transparency of reporting, and the ongoing operational stability. True trust requires comprehensive verification, including regular audits, transparent disclosures, and robust governance practices. Relying solely on a snapshot of reserves can be misleading, as it does not account for liabilities, off-balance-sheet items, or potential risks.

Building genuine confidence involves continuous oversight and assurance that the institution can meet its obligations under various circumstances. Therefore, while PoR is a useful tool, it should be part of a broader framework of trust that includes governance, liquidity management, and transparent reporting.