By Robert Tarry
Binance chief executive Changpeng Zhao portrayed optimism in the crypto adoption despite the increased scrutiny from governments following the FTX Group collapse. In his Friday address during the Binance Meet-Up event held in Athens, Zhao challenged countries to leverage their resources in regulating cryptos rather than fighting since its adoption is imminent.
Busiest Crypto Adoption in October
Referring to the recent announcement by conventional finance players, Zhao noted that crypto adoption was inevitable. He acknowledged the crypto custodial services launched by the Bank of New York Mellon as ending the veil that hindered crypto adoption in mainstream finance. He admitted other countries are in hot pursuit of Singapore’s crypto adoption, where DBS- the largest Southeast Asia bank, added crypto trading to its service portfolio in September.
Worldwide adoption of cryptos is gaining steam, triggered by the increased adoption of crypto assets among millennials. In particular, he referred to the fully owned crypto platform launched by Brazil’s Nubank, targeting to ease inbound- and outbound transactions actively executed by 2 million of its 70 million customers.
Binance chief executive indicated that the super-high interest in cryptocurrencies among customers is fueling crypto adoption in investment and digital banks. Although indirectly, Zhao was acknowledging the crypto trading service by $9 billion N26 digital bank allowing users to access and transact 100 tokens.
Supportive Regulation Ideal to the Turbulent Crypto Sector
Zhao’s address on November 25 was timely to warn countries against leveraging the higher appetite for crypto regulation following the recent FTX Group fallout to weaponize crypto sector opposition. Calls welcoming increased government scrutiny of the crypto sector became louder, with Zhao echoing the need for cautious regulation and oversight. He lamented laxity in the government’s oversight role demonstrated by the FTX contagious decline where a million creditors face multibillion-dollar loss.
He regretted that FTX Group sought refuge under the Chapter 11 bankruptcy filing after lending $10 billion in customer assets to risky bets placed by its affiliate Alameda Research. Likening the FTX Group collapse to the 2008 financial crisis, he noted the exposure plunged BlockFi, Gemini, Genesis, and Liquid into a liquidity crunch.
Referring to the nasty experiences, Binance CEO remained bullish that countries will accumulate cryptocurrencies into their conventional reserves. Instead, many countries will launch their digital assets.
Confidence in Crypto Sector Rebound
Binance chief executive remained upbeat that FTX collapse hardly implies the eventual decline of other crypto businesses. Instead, the crypto industry would regain the bullish steam just as witnessed after the 2018 meltdown. Zhao’s optimistic view garnered support from Fundstrat Global Advisors founder – Thomas Lee, who considers crypto reemergence from the 2022 lackluster performance imminent.
Conveying his response in a CNBC interview, Lee recalled the present crypto bear market replicates Bitcoin’s loss of 70% of its value in 2018. The Wall Street Strategist summed up 2022 as horrific for crypto users. Nevertheless, he was optimistic about a looming recovery just as the recovery from the 2018 crypto market decline bore the best projects.
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