Changpeng “CZ” Zhao, CEO of Binance, believes CBDCs and crypto aren’t a threat to his company or the sector and there is a space for both.
Changpeng “CZ” Zhao, the CEO of Binance, appears to have changed his mind about central bank digital currencies (CBDCs), saying during a conference that he doesn’t believe they pose a threat to his business or the cryptocurrency industry.
On November 2, CZ spoke about CBDCs and their function in the cryptocurrency business at the Web Summit in Lisbon.
The CEO of Binance asserted that CBDCs will bolster confidence among individuals who had doubts about blockchain technology and legitimize it. He added, “I firmly believe that the more we have, the better.”
According to Reuters, he also said that adopting blockchain by governments would be positive, but he emphasized that blockchain is not the same as cryptocurrency, which he described as “deflationary.”
Compared to his past attitude against CBDCs, CZ’s remarks seem to have become more conciliatory.
He claimed that they wouldn’t ever provide the same freedom as cryptocurrencies like Bitcoin and Ethereum last year. At the time, he said, “Most central bank digital currencies are likely to have a lot of control linked to them.
China is viewed by some as being in the lead in the race among central banks to develop, test, and implement their CBDCs.
However, there are also worries that programmable digital currencies would allow governments unparalleled power over who may use them and what they can be used for.
CBDCs may cause issues for those who prefer less government participation in their financial affairs.
Political commentator Peter Imanuelsen expressed his worries about how much influence governments would have over people’s wealth last month and referred to it as “global communism.”
He suggested that a CBDC connected to a digital ID may be used to repress dissenters or manage carbon-friendly expenditures.
According to rumors, Turkey is one of the nations contemplating a digital ID-linked CBDC launch in 2023.
The Atlantic Council reports that 15 nations, including China, Kazakhstan, Thailand, Saudi Arabia, Sweden, South Africa, and Russia, are now testing CBDCs.
Nigeria, Jamaica, The Bahamas, eight Caribbean island countries, and Jamaica are some other nations that have actually used a CBDC.
The United States lags behind the rest of the world because it is still in the debating stage and because Americans’ responses to digital currency have been inconsistent overall.
The International Monetary Fund (IMF) promoted programmability as a CBDC characteristic in October with the hope that it would promote “financial inclusion,” but some believe that the reality may be quite the contrary.
