Binance CEO outlines some concerns on CBDCs amid growing central bank interest

"As governments and regulators look to create their own CBDCs, I caution them against their very walled-garden nature," Binance CEO Changpeng Zhao writes in a blog post. Central bank digital currencies, a digital fiat currency, could help accelerate the growth seen in the crypto space, though Changpeng has some concerns. Most CBDCs will be permissioned, meaning permission is required to use money for meaningful transaction - likely through a lengthy approval process, he says. Additionally, he expects CBDCs to have high fees especially with cross-border transactions, compared with most cryptos that'll have "much lower fees" for similar transactions. Meanwhile, "a good percentage of Bitcoin holders these days don't necessarily view Bitcoin as a currency alternative, Changpeng adds. "So perhaps this comparison between Bitcoin and CBDCs isn't worth making at all." Towards the end of October, Nigeria launched a central bank digital currency.