Changpeng Zhao admits growth in cryptocurrency adoption due to geopolitics

Changpeng Zhao admits growth in cryptocurrency adoption due to geopolitics

Changpeng Zhao admits growth in cryptocurrency adoption due to geopolitics

Businesses will turn to cryptocurrencies as a neutral financial instrument due to rising geopolitical tensions. Such an opinion expressed Binance CEO Changpeng Zhao.

In The Money Movement podcast with Circle CEO Jeremy Allaire, he noted that the world is becoming more fragmented, and the US is using the dollar for sanctions pressure.

“Money is a very powerful tool for governments to influence each other, on geopolitics. The dollar is one of the strongest instruments that the US has,” Zhao said.

According to him, the resulting geopolitical situation will lead to greater acceptance of cryptocurrencies. Companies and even countries will start using them due to the risk of freezing accounts and other obstacles due to sanctions, the head of Binance said.

“When the world becomes even more divided, guess what will happen? People will soon be trying to use currencies to get around sanctions and stuff. As the trend intensifies, they will turn to neutral things like cryptocurrencies,” Zhao believes.

He is sure that the most suitable asset for this is digital gold.

Read Also: The IMF allowed the use of mining by Russia to ease sanctions

“Bitcoin is very neutral. It does not belong to any country. No one can mint it anymore. There is no inflation. It is the most neutral thing,” Zhao stressed.

This will eventually lead to a decrease in the global influence of the dollar, as the rest of the world is likely to switch to cryptocurrency, albeit in the distant future, he added.

Formerly Zhao called a myth the possibility of Russia circumventing sanctions with the help of digital assets.

As a reminder, Binance imposed restrictions for accounts of residents of the Russian Federation. The measures followed fifth round of EU sanctions against the country because of the invasion of Ukraine.

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