For several years now, commentators and analysts believe that the prices of cryptos will stabilize and surge when they achieve mass adoption. Changpeng Zhao, Binance founder, and chief executive said that stablecoins and charity initiatives will play an integral role in driving significant crypto adoption globally.
Zhao was speaking at Virtual Blockchain Week (VBW) where he also discussed Binance Academy’s work with Chinese government institutions on various blockchain projects. In the same meeting, he revealed his hopes that Binance can influence the shape of the country’s regulatory strategy.
During that ‘fireside chat’ with VBW’s hosts, CZ claimed that crypto-based charity programs are propelling significant crypto adoption around the world. He explained:
“If I’m going to give you some donation in crypto, you are more likely to go and get a wallet or register an account on an exchange to accept it. That type of adoption is a positive first-contact for a lot of people. So it does increase adoption. We also see that it also helps the Binance reputation […] We have been much better received in a lot of […] countries due to the charity initiative. So there [is] some selfishness to it.”
Stablecoins Attracting Merchants for Crypto Adoption
Speaking to reporters later; Zhao said that he thinks that stablecoins will help in driving major adoption among retailers and merchants. He added:
“Before [stablecoins] it was like two extremes — you either stay in USD or Fiat, [or] you’re either BTC or Ethereum or BMB, and the price fluctuates against fiat. Crypto can be “really troublesome for a shop owner because their expenses are in fiat.”
The Binance CEO described stablecoins as an intermediate step claiming that the fiat-denominated tokens might solve many challenges. They will help individuals and merchants who want to be in crypto join in; but still have their expenses covered using fiat.
Binance Aims To Join Chinese Government On DLT
When reporters asked Zhao about the exchange’s plan for its recently launched Blockchain Research Institute in Shanghai; he said that the institute will majorly focus on exploring applications for the distributed ledger technologies (DLT) in conjunction with China’s government.
“There’s a very big push by Chinese government agencies to all learn about blockchain. They are very smart in the sense that they said ‘Well if we’re going to understand this thing let’s understand it; let’s not be outsiders trying to regulate an expert area.”
Binance is working closely with the government and they are quite receptive according to Zhao. The CEO said that his brand now aims to become influential in that process.