The CEO of Binance says that the digital currencies of central banks do not pose a threat to crypto.

Most of the big central banks are looking into the possibility of making their currencies available online.

Lisbon The CEO of Binance, the largest cryptocurrency exchange in the world, said on Wednesday that plans for central banks to launch digital currencies are not a threat to other cryptocurrencies because they would validate blockchain technology and build trust among sceptics.

Most of the world’s biggest central banks, like the U.S. Federal Reserve, the Bank of England, and the European Central Bank, are looking into the possibility of releasing a digital version of their currencies, which they call CBDC.

“Is it (CBDC) a threat to Binance or other digital currencies? I don’t believe that. I think that the more we have, the better, “Changpeng Zhao said this at a news conference in Lisbon during the Web Summit, the biggest tech conference in Europe.

He said that the blockchain technology that makes cryptocurrencies possible should be used by governments and the CBDC.

“It will prove the idea of blockchain, so people who are still worried about the technology can say, ‘Okay, our government is using it now,'” Zhao said.

“So, all of those things are good,” he said, adding that CBDC would still be different from native crypto because “cryptocurrency is a deflationary asset.”

Still, he said, cryptocurrency and the stock market have been very similar as of late, with both sharply falling as central banks raise interest rates to stop record inflation.

“In theory, they should go in opposite directions, but in practise, they go in the same direction,” he said. The main reason for this is that most people who trade crypto assets also trade stocks.

“When the Fed raises interest rates and the stock market crashes, people want more cash, so they sell crypto. This is because the users still have a lot in common “he said.