According to Binance CEO Changpeng Zhao, the adoption of cryptocurrencies will come regardless of how countries choose to respond to them.
In his opinion, countries would do well to regulate cryptos as opposed to fighting them.
Crypto Regulation Debates Are Back
CZ stated that the recent fallout of cryptocurrency exchange FTX has caused crypto regulation to once again become a hot subject during a Binance event on Friday in Athens, Greece. He recommended nations to advocate for rules rather than oppose the cryptocurrency industry.
At the event, CZ said that he believes most countries are now resigned to the idea that adoption will happen regardless of their feelings about the technology.
As was reported, FTX declared that the firm had filed for Chapter 11 bankruptcy in Delaware. The exchange had loaned up to $10 billion in customer assets to finance risky wagers by its linked trading firm, Alameda Research; actions that angered FTX users.
A million creditors are reportedly facing losses in the billions of dollars. In addition, the FTX contagion has continued to spread over the past few weeks, most notably infecting the cryptocurrency exchanges Liquid, BlockFi, Genesis, and Gemini.
FTX Crash Akin to 2008 Recession
In the meanwhile, CZ linked the demise of FTX to the financial crisis of 2008 while asserting that the sector will be able to rebound.
“(This year) was a very nasty year, the last two months too much has happened. I think now we see the industry is healthier… just because FTX happened it does not mean that every other business is bad,” he said.
The CEO is still optimistic about the uptake of Bitcoin. Zhao said that he anticipated nations would begin, especially those without their own currency, to begin adding cryptocurrencies like Bitcoin to their reserves in the future.
CZ from Binance is not the only one with a positive outlook on the cryptocurrency sector. According to reports, co-founder of Fundstrat Global Advisors and prominent Wall Street strategist Thomas Lee thinks cryptocurrency will make a comeback despite a dismal year in 2022.
In a recent interview with CNBC, Lee claimed that the current bear market in cryptocurrencies is nothing new. He mentioned how the cryptocurrency market went through a similar collapse in 2018 when Bitcoin dropped more than 70% of its value from all-time highs.
How long it will take for the crypto market to bounce back remains to be seen, but if CZs 2008 recession comparison is accurate, it’s only a matter of months before we see a recovery.
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