The founder of cryptocurrency exchange Binance stated that issuers of digital currencies from central banks should not isolate them from the cryptocurrency industry as a whole.
Changpeng Zhao
presupposesthat the use of digital currencies by central banks will have a positive impact on the economy. He warns issuers against isolating central bank digital currencies. Zhao believes that this is an additional tool for governments of different countries, and it would be worse if it did not exist.
“Governments and regulators are eager to create their digital currencies, and I caution them against the limitations of these currencies,” he wrote.
Zhao noted that the exchange may need permission to use central bank digital currencies from various jurisdictions to conduct certain types of transactions. Due to the fact that the process of obtaining a license to use digital currencies of the Central Bank can be quite lengthy, integration will take longer. Therefore, the founder of Binance sees the undeniable benefits of free cryptocurrencies.
“You cannot learn about blockchain without learning bitcoin. And when you learn about bitcoins, you learn about the fundamentally necessary properties of money – scarcity, freedom of transactions and low fees. “
He noted the main properties of state cryptocurrencies.
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The first is an unlimited offer. The Central Bank will be able to issue them for any amount, which could lead to inflation.
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Second, users will need permission from the Central Bank to use money.
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Third, high transaction fees. Especially, they can increase with cross-border payments compared to most cryptocurrencies.
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Fourth, governments can ban bitcoin and other independent cryptocurrencies in order to bolster their central banks’ digital currencies.
Zhao recently named the asset’s popularity in the community as a key requirement for listing on Binance. He also does not deny the possibility of listing state digital currencies.
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