Commenting on the latest increase in Ethereum price, Changpeng Zhao made public his views on why there is currently strong demand.
Bitcoin and Ethereum Review
Changpeng Zhao, the head of Binance, recently commented on the two largest cryptocurrencies, BTC and ETH.
According to him, people today need alternative currencies for new types of transactions. This need can increase the price of Ethereum. CZ also predicted that many central banks digital currencies would be very different from publicly available cryptocurrencies.
While the price of Ethereum continues to be the hottest topic in the entire cryptocurrency community over the past few days, experts provide their own justification with various explanations as to why it happened.
Bloomberg interviewed Binance CEO Changpeng Zhao, who shared two views on the matter. According to him, the demand for Ethereum has increased recently as people want to manage fashionable transactions such as buying highly attractive NFTs. The famous CEO’s comments were as follows
All these use cases are moving right now, and people need other coins to do these kinds of new transactions. Ethereum is one such obvious example. This is probably why Ethereum is soaring.
Changpeng Zhao, known as CZ, underlined in the interview that the two best cryptocurrencies – Bitcoin and Ethereum, will coexist for a while.
He emphasized that for the long-term future, a link between BTC and ETH is unlikely, as the situation so far is only in the form of value transfer for the leading cryptocurrency. According to Zhao, Ethereum is a more complex system operating at another level.
CBDC and Public Coins
China is one of the leading countries in CBDC development. As we recently reported as Cryptocoin, country plans to expand e-yuan trials. In fact, during the 2022 Winter Olympics in Beijing, the sovereign central bank is considering using the digital currency.
However, Zhao stated that public coins and central bank digital assets will not be alike at all. According to him, CBDCs will not have freedom of use, there will not be an appropriate supply limit and people will not choose them. On this issue, CZ emphasizes:
Most central banks will have a lot of control depending on the digital currency. After all, these are essential properties that users care about.