To every crypto enthusiast, one question has always crossed the mind as to why most large and leading cryptocurrency exchanges offer the only crypto- to-…
To every crypto enthusiast, one question has always crossed the mind as to why most large and leading cryptocurrency exchanges offer the only crypto- to- crypto trading and have refrained from Fiat. Well, regulations and complications do increase with the introduction of Fiat but compared to markets it would open up is something worth a chance for these exchanges. Well finally Binance, is ready to enter the fiat territory and is planning to open a crypto-fiat exchange in every continent.
Binance founder and CEO Zhao Changpeng closed out the first day of CoinDesk’s Consensus Singapore event with a fireside chat, where he discussed a range of topics, including how he grew Binance from a startup with a $15 million initial coin offering to one of the world’s largest crypto exchanges and his future vision for the platform.
During the conversation with CoinDesk’s Pete Rizzo, Zhao indicated that by this time next year, he wants the company to launch five to 10 fiat-to-crypto exchanges, with ideally two per continent.
These plans are in line with the first step that Binance has already taken of rolling out an exchange in Singapore that supports local fiat-to-crypto trading services. Having conducted closed testing on September 18, CZ said he hopes the platform could be up and running within months, though he added that working with banks and regulators is much harder than just with cryptocurrencies.
The plan of fiat-to-crypto exchanges in every continent comes at a time when Binance is seeing healthy income over the past year despite the recent downturn in the crypto market. The CEO confirmed the same by saying Binance had earned a profit up to $200 million in the first quarter of 2018. The profit had dropped $150 million in the second quarter after being badly hit by a bearish market.
“Fiat is still where all the money is in. … And we’ve got to open that gate,” he said.
In his a fireside chat, Binance’s CZ spoke about the advantages of operating in a smaller country like Malta and said he is happy the company moved out of China even after putting an effort for 2 years. He added
“Sometimes negative things could turn out to be positive in the long term if you leverage it right,”
Commenting on Binance’s rapid growth, Zhao said luck played some role in the company’s success so far as it was established with the “right thing at the right time.”
Smaller countries tend to respond in a much more efficient way and hence Binance chose to expand through them going forward.
“You can access to the top-level government officials and they respond to your questions more directly and efficiently. … And they do appreciate the investment you are bringing into the local economy,” he said.
With Smaller countries, the customer holding cryptocurrencies would be smaller and hence it makes sense for Binance to venture into Fiats.
This strategy is also in line with the statements CZ had made when Binance entered Uganda with the first crypto exchange. CZ then had said,
“Uganda [is a] really interesting situation, only 11 percent of the population has bank accounts. It’s both a challenge and an opportunity. So it may be easier to adopt cryptocurrency as a form of currency instead of trying to push for bank adoption. It’s an interesting experiment – Africa’s a big market, that’s why we’re there.”
Binance seems to be moving really fast and CZ’s vision is just making it a stronger organization. Its not just that Binance is improving and expanding, but it also is readying itself for the competition that it will face in the future when federally approved exchanges will enter the crypto game.
Will Binance be able to take the competition head-on from these large exchanges which are standing at the doorstep to enter the crypto world? Do let us know your views on the same.
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