Speaking at Binance’s ninth anniversary celebrations, company founder Changpeng Zhao (CZ) made noteworthy assessments regarding the next decade of the cryptocurrency sector. CZ stated that AI-powered payments, tokenization of real-world assets, and the growth potential of blockchain-based finance will shape the new era of the sector.
CZ, who founded Binance in 2017, stated that cryptocurrency exchanges had serious shortcomings in terms of user experience, security, transaction infrastructure, and customer service, and explained that the company set out with the goal of improving these areas.
CZ stated that while most major exchanges at the time focused solely on Bitcoin transactions, Binance gained a significant advantage by supporting ICO projects and new cryptocurrencies in their early stages. Binance became the world’s largest cryptocurrency exchange by trading volume approximately five months after its founding.
CZ stated that if he had to advise his 2017 counterpart, he would tell him to learn more about law, regulations, and political developments.
CZ stated that Binance focused on product development and user protection in its early days, but admitted that it did not adequately consider the complexity of international regulations. He specifically pointed out that some US laws can be applied to companies and transactions outside the country.
CZ’s second important conclusion was that products need to be launched faster. Recalling that Binance launched its futures products approximately two years after its founding, CZ said that if he were to make the same decision today, he would act even sooner.
CZ stated that instead of secretly perfecting products for a long time, it is more efficient to introduce them to users at an early stage and get feedback.
CZ attributed Binance’s long tenure as the industry’s largest exchange to product quality, user security, and prevailing market conditions, stating that the company’s core mission is to “increase the freedom of money.”
Referring to Binance’s “Built by You” theme for its ninth anniversary, CZ argued that the global cryptocurrency community played a decisive role in the company’s development.
CZ stated that the cryptocurrency sector consisted of a small but highly engaged community nine years ago, and as Binance grew, numerous volunteers contributed to the company’s ecosystem.
CZ stated that centralized companies are vulnerable to regulatory, legal, and geopolitical pressures, while global and decentralized communities cannot be targeted from a single point. According to CZ, if companies treat their users well, the community can transform into a powerful defense mechanism through social media.
According to CZ, the Cryptocurrency Sector is Still in its Early Stages
Challenging the view that the cryptocurrency market has reached saturation, CZ stated that the portion of global wealth flowing into cryptocurrencies may still be below 1%.
CZ noted that depositing and withdrawing fiat currency in the sector is still costly and complex, and that stablecoins also struggle to offer both yield and liquidity simultaneously.
CZ stated that the tokenization of real-world assets is predominantly focused on the US market, and that the RWA sector needs to become more global and diversified.
According to CZ, the biggest misconception regarding the widespread adoption of cryptocurrencies is that digital assets are viewed solely as an investment vehicle.
CZ noted that people are talking about when they should “exit” the market after buying Bitcoin, but just as exiting the internet or artificial intelligence is out of the question, exiting cryptocurrency technology in the future wouldn’t make sense either.
CZ argued that blockchain and cryptocurrencies, along with the internet and artificial intelligence, are among the fundamental technologies of our time.
One of CZ’s most notable predictions concerned the convergence of artificial intelligence and cryptocurrency payments.
CZ stated that current AI applications can find the most suitable hotel or flight tickets for users, but cannot complete the purchase process, adding that this feature could be available within a few months, not a few years.
CZ stated that if AI systems begin to make transactions on behalf of users, there will be a need for a technology-specific, programmable, and global payment method to replace credit cards.
Therefore, he predicted that cryptocurrency payments could reach widespread adoption within one or two years.
“AI: A Double-Edged Sword in Blockchain Security”
CZ stated that artificial intelligence presents both opportunities and risks in terms of blockchain security, adding that advanced models can detect vulnerabilities in smart contracts and software systems much faster.
However, CZ noted that the same technology could also be used by malicious actors, emphasizing the need for rapid development of security tools for developers.
CZ also stated that artificial intelligence could help increase the transaction capacity and efficiency of blockchain networks. He explained that developing faster and higher-capacity networks could reduce transaction costs.
When asked about where the industry would be on Binance’s 18th anniversary, CZ said it was difficult to make such a long-term prediction, but that two areas had serious growth potential.
According to CZ, credit and debt markets in the cryptocurrency sector are still quite small compared to the traditional financial system.
The tokenization of real-world assets also stands out as one of the key growth areas the sector agrees on. CZ expects the migration of bonds, funds, real estate, and various financial products onto the blockchain to accelerate in the coming years.
CZ Admits He Couldn’t Predict the Growth of Stablecoins
CZ explained that his perspective changed after stepping down as CEO of Binance, saying that while running the company he attended 20 to 25 meetings a day and constantly had to deal with operational issues.
Due to his busy schedule, CZ stated that he hadn’t been able to follow some of the latest developments in the cryptocurrency sector closely enough, and admitted that he initially underestimated the growth of stablecoins.
CZ stated that he once viewed stablecoins as merely a temporary solution to facilitate money transfers between cryptocurrency exchanges, but the sector has grown far larger than expected.
CZ stated that after stepping down as CEO, he had the opportunity to examine RWA tokenization more closely, and that he also advised some national governments on this matter.
“Traditional Finance and Crypto Finance Will Merge”
CZ stated that if he had to start a business from scratch today, he would still focus on his area of expertise: transaction systems.
CZ advised people to find the intersection of their talents, interests, and the areas where they can provide value to others, jokingly adding that trying to lead an AI team would likely end in failure.
CZ, arguing that traditional finance and crypto finance will merge in the future, said that these two fields should not be seen as separate systems.
CZ pointed out that in the past, postal services and email were considered two separate worlds, but today communication is largely digital. Similarly, he stated that blockchain and cryptocurrencies will eventually become a natural part of the existing financial system.
According to CZ, cryptocurrencies are not a temporary investment product that people will exit at some point; they will be a permanent technology that will become part of the infrastructure of daily life, like the internet and artificial intelligence.
*This is not investment advice.
