Businesses will turn to cryptocurrencies as a neutral financial instrument amid rising geopolitical tensions. This view, said by Binance CEO Changpeng Zhao.
“Money is a very powerful tool for governments to influence each other and geopolitics. The dollar is one of the strongest tools at the disposal of the United States,” Zhao said.
According to him, the geopolitical situation will drive greater adoption of cryptocurrencies. Companies and even countries will begin using them to mitigate the risk of frozen accounts and other sanctions-related obstacles, the head of Binance said.
“As the world becomes even more divided, guess what will happen? People will soon try to use currencies to evade sanctions and other measures. As the trend strengthens, they will turn to neutral assets such as cryptocurrencies,” Zhao said.
He is confident that the most suitable asset for this purpose is digital gold.
“Bitcoin is very neutral. It does not belong to any country. No one can mint more of it. There is no inflation. It is the most neutral asset,” Zhao said.
In the end, this would reduce the dollar’s global influence, as the rest of the world is likely to move to cryptocurrencies, albeit in the long run, he added.
Earlier, Zhao dismissed the idea that Russia can evade sanctions using digital assets as a myth.
Binance imposed restrictions on the accounts of Russian residents. The measures followed the adoption of the EU’s fifth package of sanctions against the country over the invasion of Ukraine.