Changpeng Zhao, Binance CEO, has cautioned on the challenges that cryptocurrencies like Bitcoin could face upon the launch of the digital dollar. He made these comments during an interview.
Zhao explained that the central bank digital currency (CBDC) would lack properties like “freedom of use” and “limited supply” that make cryptocurrencies unique. He added that these properties are what appeal to users.
“Most CBDCs will have a lot of control attached to them,” says Zhao. These differences highlighted by Zhao could make users disinclined to adopt the digital dollar.
U.S. Forges Ahead with CBDC Development
Although the U.S. appears to be lagging with the CBDC development, it’s not far behind. The comments from Zhao come on the heels of the progressing development of the digital dollar.
On Monday, the Digital Dollar Foundation, in partnership with Accenture Plc, announced plans to launch five pilot programs over the next twelve months. The project aims to test the potential use cases of CBDC in the United States.
However, the U.S. Federal Reserve has been careful with its approach to digital dollar development. He had earlier remarked that it’s better to get the CBDC right than fast.