- “Crypto industry will get bigger and when the industry gets bigger, prices go higher” – Binance CEO, Changpeng Zhao
- China has already made a move in blockchain, now every other country has no chance but to follow and fast
- Binance to open OTC market in China to leverage “very strong” crypto adoption there
- Regulatory understanding still there in some countries but Institutional interest picking up
While speaking on “Bloomberg Markets: Asia,” Changpeng Zhao, founder and CEO of Malta-based Binance shared his outlook for the cryptocurrency market.
Despite the current environment where there is still “so much opposition from regulators” with former ECB president Jean Claude Trichet saying that Bitcoin isn't real and not the future of money, CZ isn't concerned.
Bitcoin is here to stay and the cryptocurrency market he said will get bigger and when that happens prices will boom as well.
“There’s different time frame of views, if you look at the short term view, bitcoin is a small market cap instrument so there will be higher volatility. But if look at the fundamental technology and in the longer term, 5 years to ten year horizon, we are very confident that Bitcoin will stay and the industry will get bigger and when the industry gets bigger, prices go higher.”
China to see “very strong” Crypto adoption
Recently, we saw Bitcoin surging 42% after Chinese President XI Jinping talked about embracing blockchain technology. This hike in BTC and other cryptocurrency’s price, he said, is because “you can't just learn about blockchain technology without learning about cryptocurrency.”
This Zao said is “super positive,” adding “China is very pro-technology, so China invests “very heavily” in blockchain technology.
Also, given that China has already made the move, Zhao is expecting “every other country in the world” to follow because they would have “no choice but to follow, or move faster.”
But according to CZ, it will be pretty hard to move faster than China, “I think we’ll are gonna see a race there,” he said.
Binance Plans to Leverage “Very Strong” Crypto Adoption in China
All of this means, we are going to see “a very strong adoption” in China with more people having an understanding of cryptocurrencies.
So, it makes sense that China is in Binance’s expansion list. Zhao shared that the exchange will follow the recommendations “very closely,” and promote the blockchain research and development.
Additionally, Binance is opening an OTC market in China similar to what other exchanges in the region are offering.
However, Binance has no office in Beijing, it’s just a rumor for now.
Southeast Asia, Singapore Zhao says is the key market. According to him, it has “already played a key role in the adoption of blockchain and crypto” through rigorous but sensible regulations.
A Race Towards Adoption
Regulatory uncertainty is no doubt “still haunts” in some countries but as he puts it “we are definitely seeing a race towards adoption now.”
As such, the leading cryptocurrency exchange is working with governments. It signed an MOU with Ukraine working closely with Singapore and MAS and “things are improving very quickly” all over the world.
Binance is also seeing “very strong interest from Turkey.” The country, he said has “very active markets” and they are looking to “support that market more proactively.”
But these regulations aren’t affecting the institutions.
The cryptocurrency exchange is “seeing a lot of institutional interest picking up,” he said.