A few hours ago there was a small online press conference organized by Binance with the CEO of the exchange CZ Zhao, and The Cryptonomist had the opportunity to attend.
Sure this 2020 is boring in some ways, being unable to travel, go out or hang out with friends, but as far as CZ is concerned this is “the most exciting boring life” as his company is really announcing a lot of new things these days.
Among other things, for 2021 Binance is preparing to expand, hinting that it will acquire many new companies, at least 20 or 30.
Binance in Africa
A good part of the journalists present at this conference were African, so a lot of space was dedicated to this continent, which according to CZ has a fundamental role in the crypto world, despite the fact that:
“many still don’t realize it. Africa is important and adopts crypto a lot because there is less traditional finance infrastructure to remove.”
So this is definitely a place that Binance is particularly fond of and focused on.
In terms of transactions, the peer to peer exchanges in Africa have been over 300 million since last March, probably due to the fact that the African banking system is not among the most functional in the world and in fact, as CZ pointed out:
“In Europe these numbers are not reached so easily because banks don’t want to work with crypto exchanges, it’s more difficult.”
Among other things, the peer-to-peer market works mainly in countries where inflation is high, so for example:
“In the US we are growing and this is the major “driving factor” that is also raising the price of Bitcoin. In fact, currently about 20 big American companies are putting about 1% of their funds into Bitcoin and already the price is going up”.
CZ and his opinion on state cryptocurrencies
One of the interesting takeaways from this conference was also when the CEO of Binance talked about state currencies, the so-called CBDCs. These are his words:
“CBDCs will definitely have unlimited supply like fiat currencies and not like Bitcoin. They will not give a lot of freedom, no matter if they use the blockchain, since they will not be decentralized like Bitcoin, Ethereum, etc. Nevertheless, they are useful to educate people about cryptocurrencies, so they will definitely be good, but they won’t be native cryptocurrencies. They might compete with stablecoins, depending on how much freedom they allow, but certainly not with Bitcoin.”
Lockdown and COVID-19
Returning to the initial topic of travel and COVID-19, CZ explains that he misses travelling and that it seems almost absurd that he misses it, as he used to complain about never being home.
In any case, on the topic of lockdown and the fact that many influencers also in the crypto sector claim that the stringent measures are illegal, the CEO of Binance explained that it is difficult to say what is illegal and what is not, as each country has different laws which, depending on the population density, can vary.
But there is one thing that actually worries CZ:
“I don’t think there are right and wrong answers [in terms of pandemic management], it’s a situation that is too complicated. A lot of states, though, want too much power and they’re sacrificing citizens’ privacy for it, so they’re now using Covid-19 as an excuse to put stringent control rules in place and I’m afraid these will continue even after”.