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Binance CEO Sees CBDCs as 'Very Positive' for Crypto

CEO outlines the positives and negatives he sees from the institutional -issued digital coins.

CZ Explores CBDCs

In the third installment of a blog series entitled “CZ’s FAQs,” Binance CEO Changpeng Zhao (CZ) took to the blogosphere to pen the benefits and potential concerns of Central Bank Digital Currencies (CBDC). 

The blog published on December 21, outlined four key benefits that CZ believes CBDCs can bring to blockchain industry and global finance. CZ generally finds that that adoption and integration of the tech brings a validation unheard of before. The more adoption and integration that occurs, the more education there is from banks and governments to citizenry about the technology. CZ finds these all to be net positives. 

“Overall, the more crypto choices we have, the better,” the blog writes. “However, as Governments and regulators look to create their own CBDCs, I caution them against their very walled-garden nature.”

By walled-garden CZ refers to the expected permission nature of the assets that runs contrary to much of the decentralized and persmissionless nature of crypto assets. CZ also points out other concerns like unlimited supply and high fees, problems that persist in traditional finance. It’s almost like CBDCs look to extend the same control over digital assets. 

“Freedom of money is the inherent principle of crypto and blockchain. Trying to place restrictions and barriers that I’ve outlined above may stifle innovation and technology development, which I believe are vital for both national economies and the global crypto and blockchain infrastructure,” the blog concluded. 

CZ has a notable openness to centralization as of late. He’s explained how centralization can play a role in onboarding new users as well as bridging the gap between value in fiat to crypto. Binance has never been a chain that is shy from showing favorability to centralization. As more governments and institutions turn their eyes towards crypto, a Great Compromise could be approaching. 

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