'Banning cryptocurrencies as currency is not possible,' says Changpeng Zhao of Binance
Industry players believe that the government might ban crypto's use as a legal tender and allow crypto's use as an asset
- Mar 16, 2021,
- Updated Mar 16, 2021 9:33 PM IST
The government has softened its stance on cryptocurrencies in India. While the Finance Minister said the government is not shutting all windows for cryptocurrencies, the confusion about the legal status of crypto is still keeping most investors at bay. Industry players believe that the government might ban crypto's use as a legal tender and allow crypto's use as an asset. But is it practically possible? Changpeng Zhao, CEO of Binance, the world's largest cryptocurrency exchange does not seem to agree much.
"Theoretically, yes. You can call it an asset, a commodity, a currency or a security. But fundamentally, cryptocurrency does have a value and liquidity. There are hundreds of millions of people around the world who are willing to hold cryptocurrencies. I can send you some bitcoin, you can send it back. You can call it a currency or not, it does not matter," says Zhao. " If there is an agreement, it acts as a medium of exchange," he adds.
The government has softened its stance on cryptocurrencies in India. While the Finance Minister said the government is not shutting all windows for cryptocurrencies, the confusion about the legal status of crypto is still keeping most investors at bay. Industry players believe that the government might ban crypto's use as a legal tender and allow crypto's use as an asset. But is it practically possible? Changpeng Zhao, CEO of Binance, the world's largest cryptocurrency exchange does not seem to agree much.
"Theoretically, yes. You can call it an asset, a commodity, a currency or a security. But fundamentally, cryptocurrency does have a value and liquidity. There are hundreds of millions of people around the world who are willing to hold cryptocurrencies. I can send you some bitcoin, you can send it back. You can call it a currency or not, it does not matter," says Zhao. " If there is an agreement, it acts as a medium of exchange," he adds.