In a recent podcast interview with Circle CEO Jeremy Allaire, Binance's CEO Changpeng Zhao stated that the increasing prevalence of sanctions and the dominance of the US dollar will drive foreign corporations to seek refuge in cryptocurrencies. As geopolitical tensions escalate and the dollar continues to be utilized as a tool for imposing sanctions, the adoption of cryptocurrencies by society will increase.
Money is a very powerful tool with which governments can influence each other, geopolitics and much more. The dollar is one of the strongest instruments the US has at its disposal.Changpeng Zhao CEO of Binance
The fracturing of the global community, according to Binance's CEO, leads to even higher adoption of cryptocurrencies:
The world is becoming more divided. Guess what will happen when this trend intensifies? People will seek to use the currency as a tool to circumvent sanctions and other operations.Changpeng Zhao CEO of Binance
Zhao predicts that Bitcoin will become this cryptocurrency:
People are looking for a neutral thing to use. Bitcoin is very neutral. It does not belong to any country. No one can produce it in large quantities. There is no inflation. It is the most neutral currency.Changpeng Zhao CEO of Binance
According to Zhao, Bitcoin is a godsend for businesses who want to do business all over the world rather than being restricted to one country's borders. As a result, if the US refuses to embrace cryptocurrencies, the dollar's dominance is likely to be jeopardized:
The states should think about whether the cryptocurrency reduces the influence of the dollar around the world? To be honest, this is exactly what is happening. And if the US continues to fight cryptocurrencies, they will develop throughout the rest of the world.Changpeng Zhao CEO of Binance
The Dollar as a Sanctioning Tool
Governments use money as a potent tool to exert influence over each other and geopolitics. The dollar is one of the most powerful instruments that the United States has at its disposal, according to Zhao.
The Fracturing of the Global Community
As per the CEO of Binance, the world is becoming increasingly divided, and the dollar is increasingly being used as a sanctioning tool. This trend will only intensify in the future, and people will turn to cryptocurrencies as a means to circumvent sanctions and other restrictions.
Bitcoin - The Neutral Currency
Zhao believes that Bitcoin is the perfect neutral currency for businesses seeking to operate across international borders. It is a neutral asset that does not belong to any country, and no one can produce it in large quantities. Furthermore, it has no inflation, making it the most neutral currency available.
Jeopardizing the Dominance of the US Dollar
If the United States fails to embrace cryptocurrencies, the dollar's dominance will undoubtedly be threatened. According to Zhao, this is precisely what is happening. The states must consider whether cryptocurrencies will reduce the dollar's influence globally. If the US continues to resist, other countries will inevitably develop them, resulting in the dollar's decline.
The Inevitable Decline of the United States
Although Americans can safeguard the dollar for an extended period, the rest of the world will eventually turn to cryptocurrencies. The US will be unable to protect its currency in the long run, and as a result, the country will have no future, according to the CEO of a leading cryptocurrency exchange.
As geopolitical tensions rise and the dollar's hegemony continues to grow, more corporations and individuals will turn to cryptocurrencies as a means of avoiding sanctions and other restrictions. As a neutral and decentralized currency, Bitcoin will undoubtedly play a significant role in this process. The United States must embrace cryptocurrencies to prevent the dollar's decline and ensure the country's long-term prosperity.