Binance chief urged not to compare central bank digital currencies and bitcoin

According to the founder of the exchange, they differ from each other on a fundamental level

22.12.2021 - 14:40

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What’s new? Changpeng Zhao, the founder and CEO of Binance, posted on his Twitter microblog that there is no point in comparing bitcoin and CBDC. In his view, the digital currencies of central banks will probably be able to displace stablecoins, but not BTC and other major cryptocurrencies.

My thoughts on CBDCs. I get asked this a lot, so I wrote it down. https://t.co/rEiYAg7rQC— CZ 🔶 Binance (@cz_binance) December 21, 2021

What did Zhao state? According to the head of the cryptocurrency exchange, CBDCs differ from the first cryptocurrency and other virtual currencies on a fundamental level. Most CBDCs will be inflationary, with high fees and restrictions on operations, Zhao is sure.

If in the future any central bank can issue CBDC with limited issuance, free transactions, and low fees, it will lead to a drop in demand for bitcoin. However, digital currencies will still remain the prevailing means of savings.

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