Binance chairman Changpeng Zhao said in an interview with Bloomberg on Monday that cryptocurrencies like Bitcoin (BTC) and Ether (ETH) will continue to exist “for some time” with more limited digital currencies like the Chinese digital yuan.
Some key features of cryptocurrencies such as Bitcoin (BTC) – freedom of use and limited access – will not be offered by central bank digital currencies, Zhao said. “At the end of the day, these are the main features that users are interested in,” he said.
Zhao said the differences between the two types of digital assets could make central bank-issued currencies unattractive to people in the crypto industry. He noted that “most of the central bank’s digital currencies will largely control them.”
Unlike fiat currencies like the US dollar, the largest cryptocurrency in the world, Bitcoin has a limited supply, which means there will be no more than 21 million bitcoins in the world. Several cryptocurrency proponents have pointed out that inflation drives money through print, suggesting that Bitcoin could be a potential defense against the fiat currencies disaster.
Zhao’s comments on CBDC come as the United States is pushing ahead with its CBDC plans, with the nonprofit Digital Dollar Project announcing five digital dollar pilot programs on Monday. To continue testing over the next 12 months, the organization has teamed up with accounting giant Accenture, a company that has partnered with the Riksbank since 2019 to develop a central bank digital currency.
Despite renewed efforts to introduce digital dollars, Federal Reserve Chairman Jerome Powell reiterated last week that it is “much more important” to get the digital dollar right than it was in the beginning. Powell has previously identified key CBD concerns such as user privacy and security.