Binance CEO Speaks at Crypto Event Saying He is Unsure Why Bitcoin Price isn’t Skyrocketing
Binance CEO Says He Doesn't Know Why Bitcoin isn’t Skyrocketing
Binance CEO, Changpeng Zhao, has been showing its support to the famous virtual currency. Binance is one of the largest and most important virtual currency exchanges by trading volume in the market.
During a speech he gave at Consensus Singapore, Mr. Zhao suggested that the market is moving into the right direction with the latest regulatory breakthroughs. According to him, this would allow financial institutions to enter the market and place their funds in virtual currencies.
In the last weeks there were several news regarding crypto regulations. For example, the cryptocurrency exchange Gemini launched a new stablecoin linked to the US dollar, and BitGO was approved to operate as a qualified custodian. These two regulations are very important for the market since they would allow wealthy investors to start investing in cryptocurrencies.
The he mentioned that he does not understand how is it possible that Bitcoin is not growing as it did in the past.
He commented about it:
“Custodian solutions, insurance, are very important, and stablecoins are very, very important – actually all of those things happened in the last week – I don’t understand why the Bitcoin price isn’t shooting through the roof.”
However, he then said that he has never been good at forecasting price movements. He went on explaining that the exchange continues to grow in many different fields.
For Mr. Zhao, one of the weakest points in the virtual currency market is the lack of infrastructure that would allow users to convert fiat currencies into virtual currencies. And this is what Binance is trying to improve by partnering with financial institutions to offer fiat trading pairs.
He explained that all the money is still in fiat currencies because the cryptocurrency market capitalization is small. And indeed, the bridges between fiat currencies and crypto are not smooth. Binance is working in order to solve this problem and provide new ways to investors to enter the virtual currency market.
Malta has been working with financial institutions and regulators in Liechtenstein, Singapore and Malta with the intention to acquire the necessary infrastructure to provide fiat pairs. He hinted that the famous exchange would have between 5 to 10 different fiat currencies from different continents around the world.
He then explained that it is much easier to work with smaller countries because it is possible to talk with prime ministers directly rather than with third line government officials.
“We are willing to work with any government that wants to work with us. Smaller ones are much easier to work with, because you can talk to the prime ministers directly.”
Changpeng Zhao confirmed that the exchange registered $150 million dollars in profits during the second quarter of the year being present in 180 different countries around the world.