The government as guarantor – Binance CEO Changpeng Zhao says central bank digital currencies (MNBCs) can benefit the blockchain and crypto industry.
MNBCs to Increase Blockchain Legitimacy
From hawk to dove, reality imposes itself. At the Web Summit held on November 2 in Lisbon, Portugal, Changpeng Zhao gave a more slick speech on central bank digital currencies, compared to his past speaking engagements on the subject.
Last year, Binance’s CEO said that MNBCs would never offer the same freedom as cryptocurrencies, that they ” will be accompanied by significant control “. He then wanted to dot the i’s, a way of highlighting a distinctive advantage of cryptocurrencies over the digital currencies of central banks.
At the recent summit, this time Changpeng Zhao mentioned the benefits of an MNBC for the crypto industry. He indicated that central bank digital currencies will help validate and build people’s trust in the blockchain. Even the skeptics would change their position, when they see their government using this technology.
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Bitcoin and digital currencies: a distinction to be made
Changpeng Zhao also dismissed ideas of a possible conflict, a zero-sum game, between MNBCs and existing cryptocurrencies like Bitcoin (BTC) and Ether (ETH). In particular, he clarified that central bank digital currencies were different from cryptocurrencieswhich he called “deflationary”.
Binance CEO pointed out that MNBCs are not not a threat, neither for his company, nor for cryptocurrencies in general. He further believes, that the more we have, the better “.
These relatively positive comments from Changpeng Zhao on central bank digital currencies come at a time when the Binance team is trying to convince the authorities in Kazakhstan, to integrate their MNBC, a digital tenge, on the BNB Chain.
The Binance CEO is also nuanced in his rhetoric on central bank digital currencies, amid the growing push that different countries and regions are making to launch their MNBCs. Recently, the European Central Bank revealed the strategic partners who will have to propose a first prototype of the digital euro.
Changpeng Zhao wants to show the glass half full, trying to demonstrate that there can be a positive synergy between central bank digital currencies and cryptocurrencies. This director of a crypto fund had also issued a thesis along the same lines, refuting the idea of an inevitable competition between MNBCs and private cryptos.
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