Bitcoin

Binance CEO warns of the drawbacks of CBDC as tests of the digital dollar continue in the US.

Cryptocurrencies like Bitcoin (BTC) and Ether (ETH) will coexist “for a while” with more restrictive digital currencies like China’s digital yuansaid the CEO of Binance on Monday, Changpeng Zhaoin an interview with Bloomberg.

According to Zhao Some of the key features of cryptocurrencies like Bitcoin (BTC) – freedom of use and limited supply – are not offered by central bank digital currencies. “Ultimately, these are the basic properties that users care about,” he said.

Zhao said the differences between the two types of digital assets could make central bank-issued currencies unattractive to people in the crypto sector. “Most central bank digital currencies will have a lot of control attached to them.”he pointed out.

Binance CEO warns of the drawbacks of CBDC as tests of the digital dollar continue in the US.
Binance CEO warns of the drawbacks of CBDC as tests of the digital dollar continue in the US.

In contrast to a fiat currency like the US dollar, the largest cryptocurrency in the world, Bitcoin has a limited supply, which means there will never be more than 21 million Bitcoin in the world. Many proponents of cryptocurrencies have pointed to inflation fueled by money pressures. This suggests that Bitcoin could be a potential hedge against the Fiat disaster.TO

Zhao’s comments on CBDCs will come as the US pushes its CBDC plans forward. The nonprofit Digital Dollar Project announces five Digital Dollar pilot programs on Monday.. To continue testing for the next 12 months, The organization worked with accounting giant Accenture, a company that has been involved with the Swedish Central Bank in developing a CBDC since 2019.

Despite the new efforts of the digital dollar, the chairman of the Federal Reserve, Jerome Powell reiterated last week that getting a correct digital dollar was “much more important” than being the first. Powell has previously set out the main concerns related to CBDC, such as: B. User privacy and security.

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