Changpeng Zhao (CZ), the CEO of Binance, has stated that his team is considering using acquisitions to bridge the gap between the traditional financial sector and the cryptocurrency industry.
This opinion was expressed by CZ on Wednesday during a speech at a Web Summit in Lisbon, Portugal.
CZ noted that his exchange had previously noticed that whenever banks collaborate with Binance, more users flock to them, increasing their valuation. To “capture some of the equity upsides,” he thinks it would be wise to invest in those financial institutions.
Portuguese city of Lisbon, one of the friendlier locations for cryptocurrency investors due to its absence of a digital asset tax, hosted the Web Summit Conference, where CZ said,
“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things. We want to be the bridge between crypto and the traditional, financial world.”
Compared to $140 million last year, Binance has so far this year committed $325 million to 67 projects. Separately, the cryptocurrency company contributed $500 million to Elon Musk’s $44 billion acquisition of Twitter and $200 million to the Forbes media company.
These numbers support a report from last month in which the CEO of Binance claimed that the exchange had set aside more than $1 billion for investments in 2022.
CZ also provided commentary on the decision by financial regulators to introduce a Central Bank Digital Currency (CBDC).
He thinks the CBDC won’t pose a threat to other cryptocurrencies because it will prove the viability of blockchain technology and win over skeptics.