Changpeng Zhao recently stated that believes that support from banks is the biggest challenge for crypto.
The Binance Chief believes that traditional finance systems are important for furthering crypto adoption.
Zhao views traditional banking institutions as a necessary element for Bitcoin rather than a rival.
Changpeng Zhao, the man at the helm of the world’s largest crypto exchange, believes that support from the traditional finance industry is an important prerequisite to increase the adoption of cryptocurrencies. Zhao’s comments came during a recent ask-me-anything (AMA) session where he answered questions on topics like crypto regulation, the relationship between traditional banking institutions and the crypto industry, and token listings on his crypto exchange.
Changpeng Zhao: Banks And Bitcoin Are Not Rivals
Speaking on Banking v. Bitcoin, Changpeng Zhao stated that the success or failure of banks doesn’t necessarily have a meaningful impact on crypto. According to him, the extent of the impact is limited to Bitcoin’s role as a safe haven asset when investors lose confidence in TradFi. However, that is true for real estate and gold as well. Zhao believes that it is possible for crypto to coexist with banks and traditional fiat currencies rather than it being a zero-sum game.
The Binance chief further argued that the success of banks will lead to a more prosperous economy with money and value which will translate to a better scenario for the crypto industry. “The more people, the more activity, the better it is for everyone. That’s how I view things,” Zhao added.
If banks are willingly working with crypto, especially exchanges, then we can really facilitate the flow between traditional financial systems and crypto financial systems.”
Changpeng Zhao, Co-founder and CEO of Binance
When asked about the regulatory landscape for the crypto industry, Changpeng Zhao revealed that the number one challenge for crypto firms today is receiving support from banks. The regulatory uncertainty surrounding the crypto industry has discouraged traditional banking institutions from catering to businesses operating in the crypto space. Zhao believes that a proper regulatory framework will restore investors’ and banks’ confidence in crypto, which will ultimately further its adoption.
During the AMA session, the Binance CEO also talked about memecoins and the listing of tokens on his crypto exchange. He clarified that he isn’t involved in Binance’s token listing process. As far as memecoins are concerned, Zhao revealed that he never understood them. However, as long as users are willing to trade them, his exchange will list them.