Published: 24.04.2022
Article reading time:
2 minutes.
The CEO of the Binance crypto exchange is confident that the sanctions pressure and the dominance of the US dollar will force international companies to seek protection in cryptocurrency.
Changpeng Zhao, while recording a podcast with Circle CEO Jeremy Allaire, said that public adoption of cryptocurrencies will grow as geopolitical tensions escalate and the hegemony of the US dollar strengthens. Zhao noted that the world is becoming more divided and the dollar is increasingly being used as a tool for sanctions:
“Money is a very powerful tool with which governments can influence each other, geopolitics and much more. The dollar is one of the strongest instruments the US has.”
According to the head of Binance, the fragmentation of the global community is leading to even greater adoption of cryptocurrencies:
“The world is becoming more and more divided. Guess what happens when this trend picks up? People will seek to use the currency as a tool to circumvent sanctions and other transactions.”
Zhao predicts that Bitcoin will become this cryptocurrency:
“People are looking for a neutral thing to use. Bitcoin is very neutral. It does not belong to any country. No one can produce it in large quantities. There is no inflation. It is the most neutral currency.”
Bitcoin is a salvation for companies that want to do business around the world, not get stuck within the borders of one country, Zhao is sure. As a result, the dominance of the dollar is likely to be undermined if the US does not accept cryptocurrencies:
“States should consider whether crypto is reducing the influence of the dollar around the world? To be honest, that is exactly what is happening. And if the US continues to fight cryptocurrencies, they will develop in the rest of the world.”
Zhao added that Americans can defend the US dollar for a long period of time, but during that time the rest of the world will switch to cryptocurrency. In the long run, the US is likely to be unable to defend its dollar. And then the United States will have no future, the head of the crypto exchange makes predictions.
Recently, Binance, in compliance with the EU sanctions requirements, announced the blocking of assets of Russians in the amount of more than €10,000. Whereas back in March, Changpeng Zhao stated that despite the sanctions, the exchange would continue to serve Russian users.
Source: Bits
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