- Changpeng Zhao said Binance might acquire traditional banks to bridge with the crypto industry.
- The Exchange believes it is a clever move to capture some of the equity upsides.
- Binance Holding had invested over $1 billion this year on million to 69 projects.
The CEO of Binance, Changpeng Zhao (CZ), has declared that his team is looking at bridging the traditional financial world and the crypto industry via acquisition. CZ expressed this sentiment last Wednesday while speaking at a Web Summit in Lisbon, Portugal.
According to a Bloomberg journalist, Binance CEO said:
Some people hold certain local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things, and we want to be the bridge between crypto and the traditional financial world.
CZ noted that his exchange had previously observed that banks drive more users to themselves whenever they work with Binance, pushing their valuation forward. He believes investing in those financial institutions would be a clever move to “capture some of the equity upsides.”
So far this year, Binance has committed $325 million to 67 projects in contrast to $140 million from last year. Separately, the crypto firm invested $200 million in the Forbes media company and $500 million in Elon Musk’s $44 billion Twitter acquisition deal. These figures corroborate a report last month where the Binance CEO said the exchange had set aside over $1 billion for investment in 2022.
Furthermore, CZ also commented on financial regulators’ move to launch a Central Bank Digital Currency (CBDC). He believes the CBDC is not a threat to other cryptocurrencies as it would validate blockchain technology and build trust among skeptics. Specifically, he said:
I don’t think CBDC threatens Binance or other crypto-currencies. It will validate the blockchain concept so that anybody concerned about the technology will say: ‘OK, our government is using the technology now.
Interestingly, most major central banks, including the US Federal Reserve, the Bank of England, and the European Central Bank, are studying the potential launch of a digital version of their currencies.
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