Changpeng Zhao (CZ) founder and CEO at Binance, the world’s biggest bitcoin exchange when it comes to volumes of trading, told Economic Times that countries shouldn’t be threatened by cryptocurrencies. It is better to embrace it now more willingly than to fight it since it would be of great help with the progress and evolution of the economy by the use of a new tool.
The Binance CEO was answering to the question on the viewpoints by governments all over the world which include India on the digital asset. Big countries have developed to be open to the technology which is believed to be a future finances’ foundational layer.
He also added that the initial response by default is normally defensive. Especially when it comes to the issue of banning it. Governments in big countries started adopting crypto in over the past two to three years.
In 2017, Bitcoin was legally recognized by Japan as legal tender. US-based cryptocurrency exchange, Coinbase, will go for an IPO this year. Even Europe has established regulations for crypto that let cryptocurrencies to be sold at banks.
Zhao thinks that governments’ knowledge about cryptocurrencies increases in the long run. In the last few years of educational effort, Bitcoin proves that it is not just for the “drug lords”. It is rather a better form of money and it is going to be future finances’ foundational layer which he believes is vital for countries to have.
A blanket ban may not be on the deck as the government indicated in the recent days. Nirmala Sitharaman, Finance Minister, states that conversations with the Reserve Bank of India are taking “calibrated position” regarding the banning of cryptocurrencies.
The CEO of Binance perceives a better relationship between regulators in the approaching years. He said, however, that a few repetitions takes to the countries’ right set of regulations. He believes that it is impossible to finish the regulations the first time since the technology is developing.
In the last one year, Bitcoin has seen a gathering over 550% which makes the platform a very profitable asset for many of the potential investors.
As per Changpeng Zhao, sharing of Bitcoin, quantitative simplification by government around the world caused by the pandemic. A burst of fresh crypto investors and the growth of Decentralized Finance among other reasons, are some of the factors that affected the rise in Bitcoin prices.
Sharing is an important event for traders of Bitcoin since insufficiency establishes Bitcoin value. The supply of new bitcoin decreases when there is halving of the Bitcoins. Only 21 million Bitcoins exist in total not like centralized monetary system. The Centralized Monetary System prints fresh currency as required. For the record, the first halving happened in the year 2012 and the second halving was in the year 2016.
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