It is already impossible for a single company to kill Bitcoin and the underlying blockchain technology. Therefore, governments and regulators should use blockchain technology and cryptocurrencies, said the executive director of the world’s largest cryptocurrency exchange.
“I don’t think anyone can turn it off now because this technology, this concept, is in the minds of 500 million people,” said Changpeng, CEO of Binance, “CZ” Zhao, in a taped interview that took place during the virtual Conference Consensus 2021 was shown by CoinDesk. “You can’t delete that.”
Tackling bitcoin and other cryptocurrencies, Zhao said, would be akin to refusing to accept Amazon’s internet business model when the e-commerce giant started in the early 1990s. Cryptocurrencies are not there to kill traditional financial or government-backed fiat currencies, but to create more “free money”.
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Cryptocurrency is “just a new tool that can increase the freedom of money around the world,” Zhao told CoinDesk advisor Nolan Bauerle. “I don’t see them as competition with regulators … and there is an opportunity for us to work together.”
Zhao’s claim comes from the fact that Binance, the largest cryptocurrency exchange by volume, is facing increased government scrutiny. Bitcoin and other cryptocurrencies face their own regulatory hurdles after becoming more popular than ever.
It’s not just US regulators; Government agencies around the world have raised questions about the business of Binance, a company that claims not to be headquartered in any particular country or region.
Zhao said his company did not intend to fight any government or country, adding that the doubts about how Binance works were likely due to a lack of regulatory clarity.
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The story goes on
“We don’t go against governments,” said Zhao. “There are times when the regulators or rules aren’t very clear. They are still set up in most parts of the world, so there are some gray areas. But [we’ve] I just have to experiment and work together and find out. “
The Binance Way
Zhao doesn’t seem to have a clear strategy for his company, although Binance is heavily involved in almost every trending crypto innovation, be it decentralized financing (DeFi), non-fungible tokens (NFTs), or tokenized real assets.
“I’m not smart enough to predict what will happen, which will be hot, which user [are] I will adopt, ”said Zhao. “Binance is organized in such a way that we just have a lot of experiments.
Zhao said he has tried to make fewer “top-down” decisions, especially when it comes to so-called “big” projects like Binance Smart Chain (BSC), a public blockchain that is gaining traction as one of the more competitive rivals Ethereum blockchain.
“Binance Smart Chain came out of nowhere,” said Zhao. “It wasn’t my idea.”
Its clarification appears to be a response to an increasing number of hacks or exploits based on DeFi protocols based on BSC recently, including some of the largest monetary exploits in DeFi history. Since BSC’s name is directly associated with Binance, many have criticized Zhao, demanding that he and Binance take responsibility for the exploits.
“Binance Smart Chain is an independent blockchain. [and] We have no control over it, ”said Zhao. “The projects there run very independently. If I talk to them, they will talk to me. But I don’t talk to them at all. “
However, Zhao said that he and his company will benefit from the success of BSC as Binance Coin (BNB) is the native crypto that BSC supports. Both Zhao and Binance remain major owners of the BNB.
In contrast to Ethereum, BSC is based on a PoSA (Proof-of-Staked-Authority) consensus mechanism controlled by 21 node operators chosen by BNB owners. Some analysts have speculated that BSC’s validators might be affiliated or linked to Binance in some way.
Zhao previously said that BSC had to sacrifice the element of decentralization for scalability, which was a problem for Ethereum.