Central Bank Digital Currency Could 'Threaten' Bitcoin, says Changpeng Zhao

News • 2020/10/22 • by

Changpeng Zhao says that there are chances that the digital currency from the central bank will pose a threat to Bitcoin.

The CEO of Binance gave an insight into the effect of the digital Yuan on Bitcoin in an interview. His response was apt and straightforward as he said that any CBDC that is well planned and launch or Yuan could pose a significant risk at Bitcoin's value.

Major Updates:

Bitcoin might be neglected when a cheaper and faster currency is launched.
The rate at which interest in CBDCs is growing in 2020 is alarming.
CZ says even if Binance launched a Yaun stablecoin, it wouldn't be any happening soon.

The possibility of risk is that the Government will do everything to favor their digital currency more than Bitcoin. There would be lots of restrictions and regulations that might push Bitcoin. Changpeng Zhao added that it's for the betterment of the industry to replace Bitcoin surely. The United States might also be falling behind China if it doesn't launch a digital currency soon as the Yuan is gaining recognition as the day goes by.

Do you also think CBDCs will overtake bitcoin? Let's discuss in the comments.

Source: Cointelegraph.

Comments (3)

Guest

exodusab

6 years ago

If there is a government pushing another cryptocurrency that’s even more open, more free, has less restrictions than Bitcoin, and is faster and cheaper to use, then that would threaten Bitcoin. But that is good for the industry, it’s just something better than Bitcoin, and would replace it.

godgrace1

6 years ago

I don't think that will happen, knowing how central banks operates i think bitcoin wont have any difficulties or problem with the deployment of central bank digital currency

visiblemoney

6 years ago

It is a practical fact that government wants total control over all things. The blockchain technology indeed takes then by surprise as they see it as pure economic incursions and revolution. The discovery of CBDCs will now serve that vengeance purpose when government world over begins to implement their sovereign digital currencies which would be used to crucify Bitcoin. Although initially, Bitcoin might be benchmarked against all the CBDCs until the new King of Crypto is discovered among the CBDCs to become new leader.