Binance CEO Changpeng “CZ” Zhao spoke about his stance on central bank digital currencies (CBDCs), not thinking that CBDCs would pose a threat to his company or the crypto sector.
Speaking at the Web Summit in Lisbon on November 2, CZ talked about CBDC and their role in the crypto industry, saying that CBDC will help validate blockchain technology and build trust amongst those concerned about it. technology
“Will CBDC be a threat to Binance or any other cryptocurrency…..I don’t think so. I think the more we have, the better.”
“It will help validate the concept of blockchain. So anyone who is still concerned about the technology will say: ‘Okay, our government is using this technology,’” Zhao said.
“So all of those things are good,” he said, adding that the CBDC will remain different from traditional crypto because “cryptocurrency It is a deflationary asset.”
However, CZ also said that recently cryptocurrencies have a strong correlation with the stock market. Both assets have rapidly receded. As the central bank raises interest rates to curb unprecedented inflation
“In theory, they should have an inverse relationship. But today they move in the same direction. Mainly because most people who trade crypto (assets) also trade stocks,” he said.
“When the Fed raises interest rates and the stock market crashes They need more cash So they sell crypto as their user base is still highly correlated,” he said.
CZ’s comments appear to have softened compared to his previous stance on CBDCs, as he said last year that CBDCs would never be as free. “Most central bank digital currencies are heavily regulated,” he said at the time.
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