CBDCs are no threat to crypto — Binance CEO
Binance CEO Changpeng “CZ” Zhao appears to have softened his stance on central bank digital currencies (CBDCs), arguing at a conference that he does not believe CBDCs are a threat to his company or the crypto sector.
CZ spoke at the Web Summit in Lisbon on November 2 about CBDCs and their role in the crypto industry.
The Binance CEO said that CBDCs would validate blockchain technology and build trust among those concerned about the technology, commenting, “I very much believe that the more we have, the better.”
He also added that governments adopting blockchain would be seen as a good thing, but he noted that blockchain is not the same as crypto which he termed as “deflationary”, according to Reuters.
CZ’s comments seem to have softened compared to his previous stance on CBDCs.
Last year he said they would never offer the same freedom as cryptocurrencies like Bitcoin and Ethereum. “Most central bank digital currencies are going to have a lot of control attached to them,” he stated at the time.
Central banks around the world are scrambling to research, pilot and deploy their CBDCs, with China seen by some as leading the race.
However, concerns remain that a programmable digital currency gives central banks unprecedented control over which groups of citizens can use it and what they can use it for.
Cointelegraph previously noted that citizens who want less government involvement in their financial lives may see problems with CBDCs.
Last month, political commentator Peter Imanuelsen highlighted his concerns over the level of control governments would have over people’s finances, labeling it “global communism”.
A digital ID-linked CBDC could be used to crack down on dissidents or control carbon-friendly spending, he speculated.
Turkey is a country planning a digital ID-linked CBDC launch in 2023, according to reports.
Related: India’s central bank outlines digital rupee CBDC plans
According to the Atlantic Council, 15 countries are currently piloting a CBDC, including China, Kazakhstan, Thailand, Saudi Arabia, Sweden, South Africa and Russia.
Other countries that have actually deployed a CBDC include Nigeria, Jamaica, the Bahamas and eight Caribbean island nations.
The US is lagging behind the rest of the world as it is still in the discussion phase, while the reactions to a digital dollar have been largely shared among Americans.
In October, the International Monetary Fund (IMF) the spying programmability as a CBDC feature that can lead to “financial inclusion.” However, some believe that the reality may well be the opposite.
