CZ Binance Believes CBDC Might Threaten Bitcoin in Long Run
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CZ Binance Believes CBDC Might Threaten Bitcoin in Long Run

October 22, 2020      Vandana Malik

Changpeng Zhao, CEO of the largest crypto exchange Binance, who is also known as CZ Binance recently talked about his views on the central bank digital currency (CBDC) and its threat to Bitcoin. He recently had an interview with Fortune senior writer Jeff Roberts and there he was asked about his opinion on the Chinese Digital Yuan. 

CZ Binance seems to be quite optimistic about CBDC by saying that it will be able to legitimize digital assets which will be highly efficient for the industry. He also mentioned that currently the countries that are planning to launch CBDC seems to be quite restrictive. 

CZ Binance Claims CBDC Will Evolve Over Time

In the interview, CZ Binance pointed out that even though most of the central bank digital currency might be restrictive now, they might evolve over time. When it comes to Bitcoin, very few CBDC will be able to have the same freedom as Bitcoin. This is because CBDCs are highly centralized and controlled by governments.

However, it might cause a threat to Bitcoin in the long run. CZ Binance specified that in case any government will be able to develop the CBDC which is more open and free than Bitcoin, then it might be a threat to Bitcoin. Despite being a threat to Bitcoin, he believes that it won’t be a bad thing as it will help to evolve the industry. 

Interest in CBDC Has Increased This Year

CZ Binance was also asked whether he will be launching a Yuan-based stablecoin. To this, he said that it won’t be coming any time soon. This year it has been noticed that the interest in CBDC is growing to a very great extent. The major reason behind this surge is due to the COVID-19 pandemic. However, it is seen that the U.S. is not in any hurry to launch one.

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Vandana Malik
Vandana Malik

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.