Chief executive officer of Binance, Changpeng Zhao said that cryptocurrencies like Ether and Bitcoin will co-exist for a certain time with more restrictive digital coins such as the one issued by the central bank of China.
During a Bloomberg TV interview, Zhao said that digital assets issued by central banks will be much different in many ways comparing them to public coins, they will not offer the same freedom of use.
“Most central-bank digital currencies are going to have a lot of control attached to them,” Zhao pointed out. “The differences between the coins can make the central-bank version look unattractive to people drawn to the crypto world, and those are core properties that users care about the most,” he continued.
Moreover, Bitcoin and Ether have hit records this year as many institutional investors and corporations are buying cryptocurrencies to add to their balance sheets. Bitcoin is used only for transferring digital value, while on the other hand, Ether supports the Ethereum blockchain, and user demand for Ether to buy assets, on which you have more types to make transactions.
Zhao mentioned that user demand for Ether to buy assets such as non-fungible tokens also could be driving prices higher, and all these use cases which are moving forwards are making people need other coins, and Ethereum is one of those clear examples, and that is why Ether is going up.