“When you send money internationally, you do not know where it is, is a black box until it turns up and if it does not turn up It’s a long investigation and crypto eliminates that, it eliminates the need for these trusted third parties,” said Alex Chehade, General Manager of Binance, highlighting the benefits of cryptocurrency in the latest episode of AB Majlis.
Chehade, who has been involved in the crypto space since 2016, expressed optimism about its potential for expansion.
“It has great room for movement and great room for expansion,” he remarked, underlining the transformative nature of the technology.
Addressing the comparison between crypto and traditional investments, Chehade emphasised that each serves a different purpose. While Bitcoin may share attributes with gold as a store of value, other cryptocurrencies fulfill distinct roles, such as Ethereum’s role as a technology play.
“Bitcoin is what people call it analogous to gold like a store of value. I think there are six attributes that people say, if you have these six attributes, it acts like money. Gold has that, Bitcoin you could say also has that. It’s easy to transfer, it’s easy to account for,” he explained.
However, when asked about the possibility of crypto replacing fiat currency in the future, he said, “It looks that way,” highlighting its adoption for peer-to-peer transactions. Whether in the form of privately issued tokens or Central Bank Digital Currencies (CBDCs), Chehade believes the ease of digital transactions will likely revolutionise traditional finance.
Binance, a global player in the cryptocurrency market, has been making waves with its strategic operations in Dubai with questions arising after embattled ex-Binance boss Changpeng Zhao stepped down as CEO following a $4.3 billion settlement the company reached with the US Department of Justice to resolve charges related to money laundering.
However, Chehade assured “It did not affect Middle East operations. We were planning for this for for a long time. So, Richard [Teng] stepped up into the role. I have worked with Richard closely for a couple years at Binance. It has allowed us to move to the next stage, I think it was looming before but now, with certainty and finality of what’s happening, it allows us to then talk to any stakeholders that did have concerns and move forward.”
Furthermore, one of the persistent concerns in the cryptocurrency space is security. Drawing parallels with the early days of the internet, Chehade acknowledged the complexities and highlighted the need for enhanced user experience to drive mass adoption.
Shifting focus to Binance’s operations in the Middle East, the GM commended the forward-thinking regulators in Dubai, Abu Dhabi, and Bahrain.
He highlighted the establishment of regulated entities in these regions, emphasising the proactive approach of Middle Eastern regulators in creating a conducive environment for crypto businesses.
Looking ahead, Chehade shared insights into upcoming trends in the crypto space. Binance, as a neutral crypto exchange, aims to diversify its product offerings for regulated markets.
He discussed the tokenisation of real-world assets, the emergence of Web3 applications and underscored Binance’s role in facilitating these developments.
In a glimpse into Binance’s future plans, Chehade revealed their excitement for expanding product offerings in regulated markets. The company aims to collaborate with regulators to introduce new products while ensuring compliance.
He expressed enthusiasm about the overall expansion of the crypto market, acknowledging its current size in comparison to more traditional markets.
“If in 1996, you asked the industry, government and people what you wanted from a phone, they would not have said an iPhone. So, you didn’t know you needed it until it was available. Some of these use cases for crypto, maybe we haven’t discovered yet. It’s an exciting place to be,” Chehade affirmed.
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