Central bank digital currencies could “threaten” Bitcoin, says CZ

Changpeng Zhao, the enigmatic CEO of Binance, believes so A well-designed central bank digital currency could pose a threat to Bitcoin.

In a video interview with Fortune Senior Writer Jeff Roberts, He was asked how the People’s Bank of China’s digital yuan initiative would affect the crypto industry.

Zhao replied to that Any blockchain or digital currency would be good for the broader industry as it legitimizes digital assets and increases awareness. He added that there is currently a race between the major countries to start one. Most CBDCs are likely to be more restrictive at first, but will evolve over time.

Central bank digital currencies could “threaten” Bitcoin, says CZ
Central bank digital currencies could “threaten” Bitcoin, says CZ

When asked directly about the threat to Bitcoin, CZ responded Very few CBDCs would have the same freedom as Bitcoin and would be highly centralized and controlled. In the long term, however, he warned:

“If a government were to promote another cryptocurrency even more openly, freely and with fewer restrictions than Bitcoin, and if it were faster and cheaper to use, this would threaten Bitcoin. But that’s good for the industry, it’s better than Bitcoin and it would replace it. “

That was added It wouldn’t be a bad thing as it would be similar to the HTML5 web language that is replacing HTML4.

When asked if Binance intended to launch a yuan-based stablecoin to complement the stablecoin existing on the exchange, CZ said it won’t arrive anytime soon. That was added There were too many restrictions on capital fleeing from China.

Interest in CBDCs grew in 2020 with mixed opinions. German politician and board member of the German Central Bank, Burkhard Balz, recently stated that a digital euro would pose a threat to the financial system if used as a store of value.

The United States doesn’t seem in a rush to bring a digital dollar to market, but the Morgan Creek Digital co-founder, Anthony Pompliano argues that if the United States does not act soon, the United States will fall behind China.

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