CBDC Are Not a Threat to Crypto, CEO Binance CZ Claims.
According to Reuters, Changpeng Zhao (CZ), CEO of Binance, said Wednesday that he does not believe central bank digital currencies (CBDCs) will undermine cryptocurrencies, such as bitcoin (BTC) and ether (ETH).
Blockchain Technology Should be Available for CBDC
Nine out of 10 central banks are exploring launching their own digital currencies, and 105 countries are looking into central bank digital currencies, according to the Bank of International Settlements (BIS).
The Binance CEO was asked during a news conference at the Web Summit in Lisbon whether CBDCs could threaten his company and other cryptocurrencies, such as bitcoin and ethereum.
“Is it a threat to Binance or other cryptocurrencies? I don’t think so. I very much think that the more we have, the better,” he said.
Blockchain technology should be accessible to CBDCs and adopted by governments, he said.
“It will validate the blockchain concept so that anybody who still has concerns about the technology will say: ‘Ok, our government is using the technology now,” he further explained..
These are all good things he added, noting that CBDCs would still differ from native crypto.
The Issues Behind CBDCs
However, there are concerns that programmable digital currencies might allow central banks to control what groups of citizens may spend them on and how they spend them.
Peter Imanuelsen, political commentator, dubbed the level of government control over people’s finances “global communism” last month in a political commentary.
Using a CBDC linked to digital ID, he speculated, dissidents could be tracked or carbon-friendly spending could be controlled.
A digital ID-linked CBDC is expected to be launched by Turkey in 2023, according to reports.
A CBDC has been deployed in Nigeria, Jamaica, The Bahamas and eight Caribbean island nations. As the US is still in the discussion phase, it is not ahead of the rest of the world, and Americans are divided over the concept of a digital currency.