LISBON: According to the CEO of Binance, the largest cryptocurrency exchange in the world, plans by central banks to introduce digital currencies would confirm blockchain technology and win over sceptics, not pose a danger to other cryptocurrencies.
The majority of significant central banks, including the U.S. Federal Reserve, Bank of England, and European Central Bank, are considering the future introduction of a digital version of their own currencies, known as CBDC.
I firmly believe that more is better when it comes to resources “At a press conference held during the Web Summit, the biggest tech convention in Europe, Changpeng Zhao made this statement.He argued that governments should use and make the blockchain technology used by cryptocurrencies available to CBDC.
The blockchain concept will be “validated,” according to Zhao, “so that anyone who still has doubts about the technology will say: OK, our government is adopting the technology now.”Thus, he concluded, “all those things are fine,” noting that CBDC would still be distinct from local cryptocurrencies because “cryptocurrency is a deflationary asset.”
However, he added, in recent times there has been a strong correlation between the cryptocurrency market and the stock market, with both assets seeing dramatic corrections when central banks raise interest rates to curb record inflation.
“They sell cryptocurrency in order to raise cash when the Fed rises interest rates and the stock market crashes. This is due to the user base’s continued high degree of correlation “explained he.
