Cryptocurrencies such as bitcoin and ether will coexist “for a while” with more restrictive digital coins such as those issued by China’s central bank, according to Changpeng Zhao, CEO of Binance.
Zhao, who runs the world’s largest bitcoin exchange, said digital assets issued by central banks will be very different from public coins. They will not offer the same freedom of use and will not have delivery restrictions, Zhao, also known as CZ, told Bloomberg TV on Monday.
“Most central bank digital currencies will have a lot of control,” Zhao said. The differences between the two types of coins could make the central bank version unattractive to people attracted to the cryptocurrency world. “At the end of the day, these are the basic properties that users care about,” he said.
Bitcoin and Ether hit record highs this year as institutional investors and corporations buy cryptocurrencies to top up their balances. On Monday, airtime hit a record $ 3339. While bitcoin is only used to transfer digital values, ether supports the Ethereum blockchain, on which more types of transactions are possible.
Users’ demand for Ether to buy assets such as non-fungible tokens could also drive prices up, Zhao said.
“All of these use cases are changing right now and people need different coins to complete this type of new transaction,” he said. “Ethereum is one of those shining examples. This is probably why the broadcast is growing. “
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According to him, about 70% of Binance users are retail customers and the rest are institutional investors. He has no plans to bring the company to market and follow in the footsteps Coinbase Global Inc., which listed shares directly on the Nasdaq last month.
According to him, Binance makes money on its own and does not need additional fees.
– Assisted by Matthew Miller and Kayleigh Leinz