Changpeng Zhao Conglomerate Pessimistic About Digital Money Made By China's Central Bank

Binance CEO Chengpeng Zhao (Yahoo Finance)

JAKARTA - The boss of the world's number 1 cryptocurrency trading platform, Binance, Changpeng Zhao has responded to the creation of digital money by central banks in various countries. According to him, doing so will reduce the value of cryptocurrency assets.

The Binance CEO said that digital money cannot provide freedom because it is in unlimited supply. This is because it will not make crypto money users tempted.

According to Zhao, crypto money owners are no longer interested in digital money made by central banks because their price movements are controlled by financial authorities in their respective countries. The central bank's financial system is inversely proportional to crypto money.

"Most of the central bank's digital currencies have a lot of control," said Zhao as quoted by Fortune, Friday, May 7.

In addition, Zhao also mentioned the Digital Yuan issued by China's central bank, the People's Bank of China (PBC). He considered that digital Yuan could coexist "for a while" with cryptocurrencies.

The Binance boss also discussed the skyrocketing prices of Ethereum (ETH) and Bitcoin (BTC). For him, the two cryptocurrencies have reached their highest prices in 2021.

On the other hand, Ethereum is also used for NFT purchases. This is claimed to be able to push the price of Ether to a higher level. Last Monday, ETH was recorded at 3,339 US dollars.

“All these instances are in motion right now and people need other coins to make new types of transactions. Ethereum is one clear example, it may be the reason why Ether went up, ”said Changpeng Zhao.

The Binance boss also confirmed that his company would not take the floor on the Nasdaq stock exchange as Coinbase did in March. Binance is already making its own money and doesn't intend to make any more money.