Despite the crypto markets plunging again after a short-lived run sending Bitcoin above the $32,000 level, Changpeng Zhao (CZ) – the CEO of the largest crypto exchange by trading volume – reiterated his bullish view on the industry in the long run. He insisted that the asset is an investment as well as a currency, and the crypto space will continue growing despite the recently rising volatility.
I Don’t Have Dollars: CZ
In the latest interview with CNBC, Binance CEO CZ explained why he only used cryptocurrencies to buy Burritos to the host, Becky Quick. The conversation began with Quick questioning the status of cryptocurrency as either a currency or an investment.
CZ responded that cryptocurrencies and fiats are interchangeable. One can use digital assets to purchase things in life and replenish the stash of fiat for prospective investment.
When pressed that – if crypto is an investment – one will not use it for purchases because people would not choose to spend something that will go up in the future, CZ replied that he holds no fiat and all he has is crypto – thus, it is the only asset he uses for purchases in life.
“For me, I don’t have dollars. Everything I have is in cryptos. So when I need to spend money, I need to spend some parts of it somewhere. For me, I’m all in cryptos. I don’t have to think about selling crypto. Crypto is my money.”
Also, he noted that crypto is much more suitable than fiat for cross-border payments as it is much cheaper and faster. Particularly, when it comes to donations, he added, crypto has demonstrated itself as a better alternative because it allows a small donated amount to be transferred – a feature currently not available for the traditional payment system.
Some People Trade, And Some People Build
In response to the state of institutional adoption in the crypto space, CZ singled out a few important areas of the industry, including NFT, DeFi, and more. He cited non-fungible tokens as “a killer app for artists,” allowing them to monetize their art in an unprecedented way.
At the end of the interview, he compared the crypto markets to stock markets, saying:
“There are a lot of people trading on the volatility of crypto. That’s the same to the stock market – some people trade and some people build.”
On Wednesday, Binance’s investing arm Binance Labs raised $500 million for its first start-up fund to build in the Web3 ecosystem. It was the latest move by the giant to support incubated, early-stage, and late-stage-growth Web3 companies.