Binance CEO calls not to isolate the central bank digital currencies from cryptocurrencies
Changpeng Zhao, the head of the Binance crypto exchange, believes that the central bank digital currencies (CBDC) will be positive to the global economy and the digital assets sphere. Therefore, central banks should not separate CBDC from the cryptocurrency sector, and their implementation may be slowed down by the excessively strict regulation from the central banks.
According to Zhao, digital fiat currencies can be used instead of many existing stablecoins, but they will never be a substitute for Bitcoin and other cryptocurrencies, as they differ from them at a fundamental level.
Zhao feels certain that the disadvantages of most CBDCs will be severe restrictions on some transactions and high fees. He said that the central bank of a country may issue a digital currency without restrictions and with low fees in the future. This will reduce the demand for cryptocurrencies, but it will not supersede them completely.
The CBDC popularization can accelerate the implementation of various innovative technologies into traditional payment systems. Beyond that point, central banks issuing their digital currencies will be interested in developing special educational programs that introduce cryptocurrencies and blockchain.
Zhao believes that exchanges will be able to integrate CBDC in the future, but this process will not be fast. Binance is ready to develop an international digital assets system and share its knowledge in the field of cryptocurrencies. For this purpose, the company has signed a memorandum of understanding with the Dubai World Trade Center Authority (DWTCA).
As part of the project, Binance will assist the crypto industry participants with obtaining a licence to operate in Dubai and developing relations with state regulatory agencies in different countries. Last month, the company proposed a list of rules for the unified crypto market regulation.
In addition, the central office of the exchange may appear in Dubai. The signal for this was the fact that Changpeng Zhao recently purchased real estate property in this city and described the UAE as a very crypto friendly country. The company headquarters may also appear in France and Ireland.
It was recently revealed that Binance withdrew its request for a permission to operate in Singapore planning to obtain a licence in the UK.
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