The Chief Executive Officer (CEO) of the world’s leading digital currency exchange Binance has expressed his view regarding central bank digital currencies (CBDCs). His statement shows that he does not consider these centralized digital currencies as potential as other cryptocurrencies, such as the world’s largest cryptocurrency, Bitcoin (BTC) are.
CBDCs Cannot Offer Limited Supply And Free Of Use Features
In an interview with Bloomberg held on the 3rd of May on Monday, the CEO of the major cryptocurrency exchange Binance Changpeng Zhao (CZ) stated that there is likely a chance that digital currencies such as BTC and Ethereum (ETH) may exist with central bank digital currencies such as Digital Yuan for a certain period in the future.
However, on the other hand, Changpeng Zhao said that there are some particular features that only digital currencies, such as the leading digital currency Bitcoin, possess, and centralized digital currencies cannot offer these features. These features are limited supply and the freedom of use. According to CZ, these core properties are the actual thing that the users usually care about.
While comparing cryptocurrencies with that of fiat currencies, Binance CEO stated that the supply of Bitcoin is limited, which means that only over 21 million bitcoins in total would be mined all across the world and not more than that. While on the other hand, the US Dollar, the fiat currency of the United States, does not have a limited supply.
These remarks from the chief executive officer of the Binance exchange have come at a time when the United States of America is moving ahead with its plans of developing a central bank digital currency which will be known as Digital Dollar, and the growth of CBDCs, in general, is also growing significantly with each passing day.