Binance CEO gesäit keng Bedrohung fir Krypto vun Zentralbank Digital Währungen - seet CBDCs wäerte Blockchain Konzept validéieren

Binance CEO: Central Bank Digital Currencies Not a Threat to Crypto — CBDCs Will Validate Blockchain Concept

The CEO of cryptocurrency exchange Binance does not see central bank digital currencies (CBDCs) as a threat to cryptocurrencies, like bitcoin and ether. “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

Binance CEO Changpeng Zhao (CZ) said Wednesday that he believes central bank digital currencies (CBDCs) are not a threat to cryptocurrencies, like bitcoin (BTC) an Äther (ETH), Reuters reported.

According to the Bank of International Settlements (BIS), nine out of 10 central banks are exploring launching their own digital currencies. The Atlantic Council’s CBDC tracker shows that 105 Länner are currently exploring central bank digital currencies.

Zhao was asked during a news conference at the Web Summit in Lisbon whether CBDCs could pose a threat to Binance and cryptocurrencies, like bitcoin and ethereum. He replied:

Is it a threat to Binance or other cryptocurrencies? I don’t think so. I very much think that the more we have, the better.

He emphasized that blockchain technology should be available for CBDCs and adopted by governments.

The Binance CEO opined:

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

The Binance chief also mentioned that cryptocurrency has been highly correlated with the stock market. However, bitcoin’s volatility recently ënner gefall that of the Nasdaq and the S&P 500, according to crypto data provider Kaiko.

Zhao, whose company investéiert $ 500 Milliounen in Twitter when the social media platform was iwwerholl by Tesla CEO Elon Musk, explained:

In theory, they should be inversely correlated, but today they go the same way, mainly because most of the people who trade on crypto also trade stocks.

“When the Fed erhéicht Zënsen 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.

Do you think central bank digital currencies pose a threat to cryptocurrencies? Let us know in the comments section below.

Kevin Helms

E Student vun der éisträichescher Economie, de Kevin huet Bitcoin am 2011 fonnt an ass zënterhier en Evangelist. Seng Interesse leien an der Bitcoin Sécherheet, Open-Source Systemer, Netzwierkungseffekter an der Kräizung tëscht Wirtschaft a Kryptografie.