Binance CEO Sees No Threat to Crypto From Central Bank Digital Currencies — Says CBDCs Will Validate Blockchain Concept

The CEO of cryptocurrency trade Binance doesn’t see central financial institution digital currencies (CBDCs) as a menace to cryptocurrencies, like bitcoin and ether. “It will validate the blockchain idea in order that anyone who nonetheless has issues in regards to the expertise will say: ‘Ok, our authorities is utilizing the expertise now,’” he opined.

CZ Sees No Threat to Crypto Coming From CBDCs

Binance CEO Changpeng Zhao (CZ) stated Wednesday that he believes central financial institution digital currencies (CBDCs) are usually not a menace to cryptocurrencies, like bitcoin (BTC) and ether (ETH), Reuters reported.

According to the Bank of International Settlements (BIS), nine out of 10 central banks are exploring launching their very own digital currencies. The Atlantic Council’s CBDC tracker exhibits that 105 countries are presently exploring central financial institution digital currencies.

Zhao was requested throughout a information convention on the Web Summit in Lisbon whether or not CBDCs may pose a menace to Binance and cryptocurrencies, like bitcoin and ethereum. He replied:

Is it a menace to Binance or different cryptocurrencies? I don’t assume so. I very a lot assume that the extra now we have, the higher.

He emphasised that blockchain expertise ought to be obtainable for CBDCs and adopted by governments.

The Binance CEO opined:

It will validate the blockchain idea in order that anyone who nonetheless has issues in regards to the expertise will say: ‘Ok, our authorities is utilizing the expertise now.’

“So, all these issues are good,” he continued, including that CBDCs would nonetheless be completely different from native crypto.

Crypto’s Correlation With Stock Market

The Binance chief additionally talked about that cryptocurrency has been extremely correlated with the inventory market. However, bitcoin’s volatility lately fell below that of the Nasdaq and the S&P 500, in line with crypto knowledge supplier Kaiko.

Zhao, whose firm invested $500 million in Twitter when the social media platform was acquired by Tesla CEO Elon Musk, defined:

In principle, they need to be inversely correlated, however at this time they go the identical manner, primarily as a result of the general public who commerce on crypto additionally commerce shares.

“When the Fed raises interest rates and the inventory market crashes, they need additional cash, so that they promote crypto. This is as a result of the consumer base continues to be very extremely correlated,” the manager concluded.

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