Binance CEO Changpeng Zhao Talks About China’s Digital Currency

The Binance CEO Changpeng Zhao is in the crypto news today for predicting that the digital Renminbi token (RMB) which the Chinese central bank announced will be based on blockchain.

CZ spoke today at the BlockShow Asia 2019 event where he shared his thoughts on the digital currency which is being developed by the People’s Bank of China. Even though we don’t know the details of this currency, it won’t be as decentralized as Bitcoin – and will be issued by the central bank.

However, the Binance CEO Changpeng Zhao thinks that it is going to be a blockchain-based version of RMB. His statement was also in the blockchain news as he noted:

“The Chinese government wants to push RMB’s influence globally. They want RMB to be competitive with the US dollar. In order to do that they really need to push this currency to have more freedom.”

Changpeng Zhao also went on to discuss the benefit of having more choices among the blockchain currencies in general. In this perspective, he said:

“Having is better than not having. Having stablecoins is better than not having them. Having Libra is better than not having it.”

The Binance CEO Changpeng Zhao was also in the news last month when hinting on these comments with quick snippets of interviews that he gave during various events.

For those of you who haven’t been following the updates, last month the President of China Xi Jinping called for the country to accelerate its adoption of blockchain technologies. He did not call out Bitcoin or other cryptocurrencies but CZ believes that the message brings a lot of positive effects to the industry as a whole.

“Everyone that I’m in touch with who was laughing at blockchain before is looking at blockchain now. I think that’s a huge sign for our industry. When you learn about blockchain, you almost have to learn about Bitcoin. If you learn about smart contracts, you will have to learn Ethereum.”

As soon as Xi made his remarks, the Bitcoin price spiked to $10,400 but has later on retraced to the region below $9,000 which is still its main resistance. According to some investors, the Chinese digital currency will be issued within 2-3 months.