Changpeng Zhao weighs in on CBDCs and the BitMEX case

Changpeng Zhao, chief executive of the cryptocurrency exchange Binance, told Fortune in an interview how he sees the future of central bank digital currencies (CBDCs) and what the pursuit of the BitMEX trading platform by U.S. regulators means for the industry.

In Zhao’s view, in the early stages only a few CBDCs will have the same freedom as Bitcoin. He did not rule out that, in the future, assets could be more open and cheaper to use.

He compared their emergence to HTML5, the programming language that replaced HTML4.

“But this will be good for the industry,” Zhao said.

Some media outlets interpreted his words as seeing a threat to Bitcoin from CBDCs. Zhao said this was a misinterpretation of his remarks.

I wanted to ignore this, but a lot of people are asking. This is a mis-quote, changed wording (topple), and out-of-context.

Watch the original conversation in this video: https://t.co/6K233xoBXt

(Even the Fortune article title is a bit of a click bait 😂) https://t.co/gF5Bkr069d

— CZ Binance (@cz_binance) October 22, 2020

The head of Binance believes that the initial versions of CBDCs will be fairly centralized. Even as they use blockchain technology, they will be very different from Bitcoin, he said.

I believe the first versions of CBDC are all likely going to be fairly centralized. Even as they use blockchain and cryptography technologies, they will be fairly different from #bitcoin.

— CZ Binance (@cz_binance) October 22, 2020

He also touched on the BitMEX case, noting that regulators have lately taken a tougher stance toward the industry. He urged the community to “be more careful” and called the pursuit of the exchange “a worrying sign” for the Bitcoin industry.

Earlier, SEC Commissioner Hester Peirce expressed a similar view. According to her, the charges against BitMEX are a “loud and clear signal” to the industry about the need to comply with regulatory requirements.

The Bahamas issued the first sovereign digital currency. The Sand Dollar project does not provide anonymity for Sand Dollar users, but adheres to privacy and data protection rules.

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