Changpeng Zhao defended the use of bitcoin as a reserve asset by country and reinforced the potential of using cryptocurrency as money
Changpeng Zhao, founder and former CEO of cryptocurrency exchange Binance, has once again defended the potential of bitcoin not only as a store of value, but also as a new type of money. The billionaire also spoke about the possible adoption of the asset as a reserve currency by countries.
Zhao attended the Bitcoin Middle East North Africa Conference in Dubai, stepping up his public appearances since leaving prison in the United States. He served a four-month sentence after being convicted and pleading guilty to charges against him and the exchange.
In the billionaire's view, "we shouldn't be calling bitcoin bitcoin. It's just money." He argued that the asset's use cases are expected to grow in the coming years, based on its current potential to be both a store of value like gold and a digital form of money.
Although he did not share specific predictions about the future price of the cryptocurrency, he stated that the value of the asset would increase "mathematically" if it were adopted by countries as a reserve asset, indicating a great potential for appreciation.
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The former CEO of Binance pointed out that, currently, between 5% and 10% of consumers already invest in bitcoin, creating a trend that "it will quickly become the most invested asset in the world". To do so, however, it will still need to overcome the barrier of 20% of investors until reaching "mass adoption".
Still, Zhao said he is confident that all consumers around the world will own bitcoin eventually, but noted that it could take “a few generations.” In that scenario, the asset’s market cap would be “much higher” than gold.
Bitcoin reserves?
He was also asked about the proposal under discussion in the United States for the country to create a "strategic bitcoin reserve", similar to the gold reserves that the world's largest economy currently has. Zhao shared a positive view on the topic.
"It would be a very smart thing for the US to do, and it would also have a domino effect on other countries around the world. If the US does it, then every other country will have to do it too," the Binance founder said.
Zhao says the strategy is “fantastic” and that it would be “inevitable” for Hong Kong to follow suit. In the executive’s view, the region has become a “test” market for China involving a possible future adoption of digital assets.
The trend, the billionaire believes, is that China will end up accumulating more bitcoin reserves "discreetly", instead of making public announcements about the action. Currently, however, the country continues to adopt a tough stance and prohibits investments in the cryptocurrency.