Changpeng Zhao, CEO of Binance, believes that an increasing number of traditional monetary institutions have recently turned their attention to digital currencies, especially Bitcoin.
He also mentioned that the Binance trading platform will change its structure to comply with regulatory requirements.
Financial Institutions Flock to the Crypto Square for Bitcoin:
In a recent interview with the source , Binnas Founder and CEO Changpeng Zhao shared his views on the latest trends in the crypto space.
According to him, global financial institutions and investors have already recognized the advantages of digital assets.
As they started jumping onto the cryptocurrency bandwagon, he added:
Financial institutions are coming in bigger and bigger than ever before.
We are also seeing traditional financial services from some of the big names moving into the crypto space.
Changpeng Zhao, also known as CZ, explained that Bitcoin is not only a currency, but also a multi-asset technology and a whole new platform.
For this reason, many leading financial institutions view it as an investment vehicle.
The CEO emphasized that digital assets will play a huge role in the future cash network.
However, predicting which sectors of the economy they will invade will be very difficult at the moment.
The largest cryptocurrency trading platform has faced some hurdles from regulators recently.
Monitoring and regulators in the UK, Hong Kong, Japan and Singapore have issued multiple regulatory warnings about Binance in the past months.
A few weeks ago, South Africa’s Financial Sector Conduct Authority (FSCA) also joined that list.
According to the regulator, Binance does not have the necessary registration to provide brokerage services or make investment recommendations in the African country.
In an effort to solve these problems, CZ assured that the trading venue will change its structure.
More specifically, Binance will rebuild itself into a centrally licensed financial institution, commenting:
Four years ago we wanted to embrace decentralization but we are running a centralized trading platform.
We need a makeover.
We need to strengthen.
We are making these changes to make it easier for regulators to work with us.
What about CBDCs?
CZ gave his opinion about central bank digital currencies and their future employment, describing them as a controversial asset with advantages and disadvantages.
He stated that these coins will educate people about cryptocurrencies.
It will also increase the acceptance of cryptocurrencies among the general population, he stated:
Once people use CBDC to pay for a cup of coffee, they can also say “Oh” this is very similar to Bitcoin, I can also use Bitcoin to pay my other friend in a different country.
He added that limited freedom and limited government control would be one of the main disadvantages of these CBDCs.