Crypto exchanges unfazed by central banks’ digital currencies

Cryptocurrencies are unfazed by the plans of central banks to launch digital currencies. Binance CEO Changpeng Zhao instead said the more digital currencies there are, the better as they would validate blockchain technology and build trust among sceptics. 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, dubbed CBDCs. The CEO of the world’s largest crypto exchange said the blockchain technology behind cryptocurrencies should be available for CBDCs and adopted by governments. CBDCs would still be different from native crypto as cryptocurrency is a deflationary asset. Still, he said, cryptocurrency has been highly correlated with the stock market, with both assets correcting sharply as central banks hike interest rates to control record inflation.