Home Press OfficeBinance Binance CEO speaks on the relevance of fiat currency, cryptocurrency

Binance CEO speaks on the relevance of fiat currency, cryptocurrency

by Radarr Africa
Binance CEO speaks on the relevance of fiat currency, cryptocurrency

Binance chief executive officer Zhao Changpeng the founder of the world’s largest Bitcoin exchange said digital assets issued by central banks will be different from public coins in several ways. They won’t offer the same freedom of use and won’t have a supply capitalization in place.

Just as Central banks around the world, are fired up to issue digital cash in a bid to fend off emerging threats from cryptocurrencies and improve payment systems. Cryptocurrencies like Bitcoin and Ether will co-exist “for a while” with more restrictive digital coins such as the one issued by China’s central bank.

This he disclosed during an interview with Bloomberg TV, In his words “Most central-bank digital currencies are going to have a lot of control attached to them,” but the differences between the two types of coins could make the central-bank version unattractive to people drawn to the crypto world. “At the end of the day, those are core properties that users care about,” he said.

Bitcoin and Ether have hit all-time highs this year as institutional investors and corporations buy cryptocurrencies to add to their balance sheets. 

On Monday, Ether traded at $3,339, while Bitcoin is used only for transferring digital value, Ether supports the Ethereum blockchain on which more types of transactions are possible.

User demand for Ether to buy assets such as non-fungible tokens also could be driving prices higher, Zhao said.

“All of these use cases are moving right now and people need other coins to process the new transaction and this is what drives the price of Ethereum.

Currently, about 70 per cent of Binance users are retail customers with the rest being institutional investors.

He added that at the moment, Binance has no plans to go public or follow in the footsteps of Coinbase Global Inc. which listed shares directly on Nasdaq last month.

Binance will continue to make money on its own and doesn’t need to raise more, he said.

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