UpdatesMay 06, 2023

Cryptocurrency and banking can coexist, Binance CEO stated

Changpeng Zhao believes that the cryptocurrency community should not rely on the collapse of banking institutions to ensure the success of digital currencies.

According to the general manager of the Binance exchange, digital currencies and banking can exist side by side without interfering with each other. Changpeng Zhao strongly rejected the claim that the success or failure of the classical banking sector has a significant impact on Bitcoin. He further explained that digital currencies are just one of many possible investment options for investors to deposit their funds outside of banks. The entrepreneur mentioned in the thread such alternative possibilities as real estate, gold or stocks.

Cryptocurrencies and banking can coexist

Although after the recent crisis of American banks, which appeared in the first quarter of this year, increases in the digital asset market were attributed to this negative event, according to a well-known entrepreneur from the cryptocurrency industry, investors should not expect a complete failure of the banking system.

In Changpeng Zhao's recent opinion, virtual currencies can coexist seamlessly with banking to the benefit of both sectors. What's more, the success or failure of one of them should not translate into the other, as it happens in the variants of investing in real estate, gold or stocks. Binance CEO shared his latest insights with the cryptocurrency community via Twitter.

The Chinese-Canadian entrepreneur referred to a number of questions that were asked in connection with the potential failure of banks and the benefits it could mean for the oldest of the cryptocurrencies. However, this businessman presented a slightly different point of view than some assumed. He pointed out that digital currencies are only one of many options that investors can choose.

The usefulness of digital currencies will increase in the future

According to Changpeng Zhao, enthusiasts of BTC and other digital currencies should not rely on the failure of the banking sector. Instead, he emphasized that it is desirable to focus on increasing the use of cryptocurrencies by providing more utility to this innovative part of the economy.

In the opinion of the Binance CEO, the cryptocurrency community should focus on developing the usefulness of crypto assets in aspects such as transaction speed or low transfer costs to be an alternative to the traditional banking system. Waiting for the final defeat of the banks and hoping for a deeper adaptation of Bitcoin and other cryptocurrencies is not the right solution.

Interestingly, Changpeng Zhao downplayed the correlation between the problems of American banks and the recent growth in the digital currency market. He strongly emphasized that in order to reduce the potential risks that are directly related to such institutions, a number of investors reached for various assets at that time - not only those related to blockchain technology.