Binance CEO Changpeng Zhao has softened his stance on central bank digital currencies, saying they no longer pose a threat to the crypto sector.
Speaking at the Lisbon summit, Changpeng Zhao touched on the topic of central bank digital currencies. He believes that thanks to the blockchain, on the basis of which CBDCs function, regulators and financial institutions can change their minds about the latest technologies. This will contribute to the mass adoption of the blockchain and increase confidence in this technology. Moreover, blockchain and cryptocurrencies are different things. Therefore, Zhao believes that the more central banks work on their own digital currencies, the better.
These statements by Zhao sounded softer compared to his previous statements about government stablecoins. Earlier, the head of Binance said that they will never be able to provide people with the same level of freedom as Bitcoin and Ethereum. On the contrary, with the help of digital currencies of central banks, it will be easier for the regulator to control user transactions and see what people spend money on. Zhao expressed concern that CBDC could become a full-fledged replacement for Bitcoin.
Recently, Cardano founder Charles Hoskinson made a similar point. He believes that state digital currencies can violate the privacy of their owners and will contribute to their excessive dependence on the state.
However, most central banks are already conducting extensive research on their own digital currencies and launching pilot projects to test them. One of the leaders of this “race” was China, whose government has repeatedly carried out free distributions of digital yuan in various Chinese provinces. In addition, since August, residents of the Chinese city of Ningbo can pay with the digital yuan for subway rides.
Source: Bits
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