Binance CEO Warns Central Banks Against Digital Currency Isolation Policy

Briefly:

  • Binance CEO Changpeng Zhao told in his blog about the essence and future of CBDC
  • He warned the central banks against isolating digital currencies from the rest of the crypto sector
  • According to Zhao, this will slow down the integration of the new type of assets into the rest of the industry
  • At the same time, the CEO of Binance believes that CBDCs will serve the whole sphere

According to Binance CEO Changpeng Zhao, digital counterparts of fiat currencies could have a positive impact on the crypto sector. At the same time, he warned the central banks against isolating these assets from the rest of the industry, which would negatively affect the pace of integration.

He shared his opinion on this in his own blog on Tuesday, 21 December. According to Zhao, CBDCs (digital currencies) are not without their advantages.

First of all, they serve as confirmation that blockchain technology does not just work, it is reliable. Also, this tool can be used to promote ideas of digital assets, popularize them.

Over time, CBDCs can serve as an analogue or even replace some stablecoins, acting as a kind of “guarantor” of the market. These assets are perfect for “overclocking” and in the future will bring the segment to a new level.

But this is only possible if digital currencies are organically integrated into the rest of the sector.

With tight regulation by central banks, implementation will slow down due to the red tape in approving large transactions and international transfers.

In addition, now CBDCs are “on the sidelines” of the main cryptocurrencies, since they contradict the principles of this industry, for example, the anonymity of the parties when concluding a transaction.

Also, according to Zhao, CBDC will serve as an alternative to BTC, but not replace it. This is easily explained by the fact that some investors view bitcoins as a hedge asset rather than a means of payment.

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