Binance CEO Changpeng Zhao (CZ) explained on Wednesday why Binance spends time supporting cryptocurrencies and blockchains beyond those it chiefly develops.
While the executive remained optimistic about the BNB Chain ecosystem, he said that he personally is a “heavy promoter of Bitcoin (BTC).”
Are Binance’s Blockchain Centralized?
In an AMA hosted over Twitter on Wednesday, a questioner raised concerns that the “Binance Blockchain” isn’t being promoted by its namesake company and that many crypto users view it as a “shitcoin.”
CZ explained that Binance would prefer that its many child networks – including BNB Beacon Chain, BNB Smart Chain, and an upcoming “greenfield” chain – remain independent, and decentralized.
“Anything associated with Binance is often accused, wrongly, of being too centralized,” he said. “We’re caught in between. We could give a lot more support, or we could let them run on their own.”
The “decentralization” of Binance’s blockchains came under scrutiny last year after Binance Smart Chain (BSC) was hacked for $600 million in BNB. The network collaborated with roughly a dozen service providers to freeze the blockchain and stop any more money from escaping at the time, thanking them for their “quick and attentive response.”
— iNil (@lnil) October 6, 2022
Bitcoin as a Safe Haven
Amid such scrutiny, CZ said Binance prefers letting such networks be “independent” and treating “all blockchains on an equal basis” from the perspective of its exchange business.
“We promote Ethereum. I promote Bitcoin very heavily myself,” said CZ, while still voicing support for BNB – Binance’s native exchange token.
Earlier in the discussion, the executive noted that “blockchain technology” is used worldwide for both fundraising and as a “safe haven asset” by a “dedicated group of people,” possibly numbering in the hundreds of millions. “Especially Bitcoin,” he added, “[and] some of the top crypto assets.”
Demand for Bitcoin surged in March withdrawal panic swept across the major regional banks in the United States, indicating some level of market recognition for Bitcoin as an insurance policy against macroeconomic failures. The asset’s correlation to stocks tapped a two-year low in June.
#bitcoin price fluctuates. Its utility is steadily increasing. 🤷♂️
— CZ 🔶 Binance (@cz_binance) June 30, 2023
Last month, Binance confirmed that it is setting up nodes to support Bitcoin’s layer 2 lightning network. The nodes will help facilitate cheaper and fast BTC withdrawals from the exchange.
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