Binance’s CEO: Central bank-issued digital currencies may pose a threat to bitcoin

Oct 22, 2020

Changpeng Zhao is the founder and CEO of Binance, one of the world’s biggest crypto exchanges. Over the years, he has made himself known for often commenting on the future of bitcoin.

Now, he has once again talked to the media about the cryptocurrency. In addition, he comments on one of the most hyped phenomena in the crypto world in the past year, central bank-issued digital currencies (CBDC:s).

Thinks central bank-issued currencies have too many restrictions

In an interview with Fortune magazine’s web TV program “Balancing the Ledger”, Changpeng Zhao is asked how he thinks projects such as China’s digital yuan may affect bitcoin.

The crypto exchange-CEO answers that he does not believe that CBDC:s will initially be a major threat to bitcoin – because they are likely to come with a number of restrictions that make them less free compared to the cryptocurrency.

However, he believes this may change over time.

“If there is a government pushing another cryptocurrency that’s even more open, more free, has less restrictions than bitcoin, and is faster and cheaper to use, then that would threaten bitcoin. But that is good for the industry, it’s just something better than bitcoin, and would replace it”, he says in the interview.

Comments on Bitmex case

In the same interview, Changpeng Zhao talks about the US legal case that is currently threatening the people behind Binance competitor Bitmex.

The CEO believes that this is something of an alarm clock for the rest of the industry – which he believes must be more careful and compliant when it comes to following rules and laws.

“Back in the summer of ’15, you could probably do anything because there was no regulatory guidance. But I think by 2018 and in the last couple of years, there has been a lot of regulatory guidelines”, he says in the interview.

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