Traditional financial institutions and investors have begun to aggressively enter the cryptocurrency market, according to Binance CEO Changpeng Zhao.
Changpeng Zhao, the CEO of Binance, believes that an increasing number of traditional monetary institutions have recently turned their attention to cryptocurrencies, particularly bitcoin. He also stated that the trading platform’s structure would be altered to meet regulatory requirements.
Financial Institutions are flocking to Bitcoin (BTC).
Changpeng Zhao, Founder, and CEO of Binance, recently spoke with The South China Morning Post on the newest trends in the crypto market. Global financial institutions and investors, he claims, have already recognized the value of digital assets. Having said that, they have begun to hop on the cryptocurrency bandwagon, with bitcoin being their primary focus:
“The financial institutions are coming big time. We also see the traditional financial services from some of the bigger names moving into the space.”
Changpeng Zhao, often known as CZ, stated that bitcoin is more than just money; it is also a multiasset class technology and an entirely new platform. As a result, many of the world’s largest financial institutions regard it as an investment vehicle.
The CEO stated that digital assets would play a significant role in the future financial network. Predicting which sectors of the economy they will penetrate would be “quite difficult” at the present.
Regulatory Concerns
Regulators have threw some roadblocks in the way of the world’s largest cryptocurrency exchange. In recent months, regulators in the United Kingdom, Hong Kong, Japan, and Singapore have issued various regulatory warnings to Binance.
South Africa’s Financial Sector Conduct Authority (FSCA) was added to the list a few weeks ago. Binance does not have the essential registration to offer brokerage services or make financial recommendations in the African country, according to the authorities.
In an attempt to address these issues, Zhao stated that the trading venue’s structure would be altered. Binance would re-establish itself as a regulated financial institution with a centralized headquarters:
“Four years ago we wanted to embrace decentralization but we do run a centralized exchange. We need a shift. We need to enhance. We are making those changes to make it easier for regulators to work with us.”
So, how about CBDCs?
Following that, CZ shared his thoughts on central bank digital currencies and their potential applications. He regarded them as contentious assets with both benefits and drawbacks. CBDCs would educate the public on cryptocurrency. They would also boost the general public’s acceptance of digital assets:
“Once consumers use CBDC to pay for a cup of coffee, they may think to themselves, ‘Oh, this is really similar to bitcoin; I could also use bitcoin to pay my other friend in another country.’” However, some of their most important downsides would be reduced freedom and political control.
Also Read: Ray Dalio Warns That If Bitcoin Becomes “Really Successful,” Regulators Will “Kill It,”
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