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

Binance’s CEO said that he does not consider central bank digital currencies, or CBDCs, to be a threat for cryptocurrencies like Bitcoin and Ethereum. “It will validate the blockchain concept so that anybody who still has concerns about the technology will say: ‘Ok, our government is using the technology now,’” he opined.

CZ sees no threat to crypto coming from CBDCs

Changpeng Zhao (CZ), Binance CEO, stated Wednesday that he does not believe central bank digital currency (CBDCs), are a threat to cryptocurrencies such as bitcoin (BTC), and ether.

The Bank of International Settlements, (BIS) reports that 9 out of 10 central bankers are looking into launching their own digital currency. The Atlantic Council’s CBDC tracker shows that 105 countries are currently exploring central bank digital currencies.

Zhao was asked by a reporter at the Web Summit Lisbon if CBDCs might pose a threat for Binance or other cryptocurrencies like bitcoin and Ethereum. His response was:

Are they threatening Binance and other cryptocurrency cryptocurrencies? I don’t think so. It is my belief that more knowledge makes us stronger.

He stressed the importance of blockchain technology being available for CBDCs as well as adopted by government governments.

Binance’s CEO stated:

It will validate the blockchain concept so that anybody who still has concerns about the technology will say: ‘Ok, our government is using the technology now.’

“So, all those things are good,” he continued, adding that CBDCs would still be different from native crypto.

Crypto’s Correlation With Stock Market

Binance’s chief stated that the cryptocurrency market has always been closely correlated to it. However, bitcoin’s volatility recently fell below that of the Nasdaq and the S&P 500, according to crypto data provider Kaiko.

Zhao explained that his company had invested $500 million in Twitter during the acquisition of Tesla CEO Elon Musk.

Although they could theoretically be mutually incompatible, today’s market is essentially the same as before, due to the fact that most people trading on crypto also trade stock.

“When the Fed raises interest rates and the stock market crashes, they want more cash, so they sell crypto. This is because the user base is still very highly correlated,” the executive concluded.

Is it possible for central banks to use digital currencies as a way of threatening cryptocurrencies? Please let us know your thoughts in the comment section.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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