Businesses will turn to cryptocurrencies as a neutral financial instrument due to escalating geopolitical tensions. This view was voiced by Binance CEO Changpeng Zhao.

In The Money Movement podcast with Circle CEO Jeremy Allaire, he stated that the world is becoming more fragmented and the US is using the dollar for sanctions pressure.

“Money is a very powerful tool for governments to influence each other on geopolitics. “The dollar is one of the most powerful tools the US has,” he said.

According to him, the emerging geopolitical situation will lead to greater acceptance of cryptocurrencies. The Binance head said that companies and even countries will start using them due to the risk of account freezes and other hurdles due to sanctions.

“When the world is further divided, guess what? People will soon try to use currencies to circumvent sanctions and the like. As the trend intensifies, they will turn to neutral things like cryptocurrencies,” says Zhao.

He is sure that the most suitable asset for this is digital gold.

“Bitcoin is very neutral. It does not belong to any country. Nobody can make mint anymore. There is no inflation. This is the most neutral thing,” Zhao stressed.

He added that this will eventually lead to the dollar’s global influence diminishing, as the rest of the world is likely to switch to cryptocurrency albeit in the distant future.

Earlier, Zhao described the possibility of circumventing Russia’s sanctions with the help of digital assets as a myth.

Recall that Binance imposes restrictions on the accounts of residents of the Russian Federation. The measures follow the fifth round of EU sanctions against the country for its invasion of Ukraine.