Alex Saunders, the CEO and founder of Nugget’s News, has interviewed Chanpeng Zhao (CZ), the CEO of Binance. They discussed the recent events in China and Binance’s future plans.
Altcoin Buzz is providing you with takeaways of the interview with Changpeng Zhao.
Trade war and currency war. Will China win the ongoing competition with the US in the technological realm?
CZ believes China has grown significantly in the last decades. And the local internet is very developed. Besides, the Chinese economy is strong: there are many valuable companies and wealthy individuals. Currently, China is actively promoting RMB to be the world’s dominant currency. CZ is sure China will apply the same approach to the blockchain technology.
What is crypto’s and Binance’s story in China?
Binance was started in July, 2017 in Shanghai. But a few months later China banned crypto and ICOs. In October, 2017 the Binance’s office was moved. Since then, Binance has no offices in the country. But the company’s team is actively attending all sorts of conferences in the region. Besides, the exchange made some investments in China-based projects. It is noteworthy that Binance’s structure differs a lot from the common understanding of an office-based business.
Besides, CZ mentions that China’s main intention is to educate people about blockchain. Everyone should understand this technology in the same way we understand the internet. At the same time, it is quite clear that the government is promoting blockchain technology but not cryptocurrencies. Concurrently, further events were treated as a Bitcoin ban. But it is not exactly so. Bitcoin is pretty legal in China but with some operational restrictions.
About the digital Yuan
Recent events in China are definitely linked to the release of the digital Yuan. But this coin will not enjoy the same freedom as BTC. It will be designated for electronic payments. And no doubt, China will be promoting its own currency at the expense of others. It is still not clear what’s in store for other coins.
Office raid incident
CZ dispelled the Block’s information that its purported office in Shanghai was raided. He underlines that the company cannot technically have offices there. Currently, Binance lawyers are evaluating the situation. At the same time, the Block is very likely to face a lawsuit. CZ stresses they have the right to business privacy along with transparency. Thus, they decided not to disclose the company’s addresses. And those who want to cooperate have to respect this policy.
Global expansion: India and Australia
At the moment there is a lot of confusion about the cryptocurrency bill in India. But until this controversial bill is passed, BTC remains legal in the country. And Binance is ready to promote crypto in India. The same applies to other counties, where Binance aims to offer multiple solutions. These include investing, opening separate exchanges, integrating with local businesses.
A good example is the recent progress in South Australia where the exchange opened a website. On it, you can pay for your travels with crypto. Another purpose is to turn airports into crypto hubs. And Binance is launching a crypto shopping street. Besides, a few days ago Binance partnered with TravelByBit.
Binance DEX and DeFi
Binance Chain is offering an open-source code to all developers. Hence they will be able to improve some parts of the chain. And have some validators for performance purposes.
Binance is very supportive of the DeFi project. Binance.com is listing all projects that meet these two criteria: number of users and product evaluation. Binance DEX is asking the community to comment and validators to vote.
The company is moving fast, adding new BNB use cases. Very soon Binance will introduce a new BNB feature, allowing users to get a discount for BNB payments. The platform continues helping projects with IEOs.
CZ says that the main “firewall” against hacks is a reserve for covering the loss. The exchanges can protect their users, keeping 90% of funds in cold storage. Wallets normally contain no more than 2% of all the funds. So, at the end of the day, even million-figure hacks are not that damaging.
Mining and halving
People are too excited over the halving now. Thus, CZ says that the market overreacts. Now, only 0,1% of the population owns crypto, but more users will join over time. Later on, blockchain will become widespread, so the price will only grow. Short-term forecast is difficult, and yet long-term prospects are huge. And blockchain will be more powerful than the internet, eventually.