The CEO of Binance, CZ, discussed the future of CeFi, the necessity for crypto regulation, and widespread use in Web3
Changpeng “CZ” Zhao, CEO of Binance, participated online in a fireside talk organized by Deng Chao, CEO of HashKey Capital, at the Hong Kong Web3 Festival in 2023.
He spoke about issues such as the future of centralized finance (CeFi), asset security, and the widespread use of cryptocurrency and Web 3.
CZ stated that although he had previously been to Hong Kong frequently for business, he could not make the initial Web3 event.
However, he pledged to show up in person for subsequent occasions in Hong Kong.
Furthermore, CZ gave his views on security incidents that have occurred recently in the CeFi space and ways to prevent them from happening in the future.
He claimed that Binance is taking numerous steps to protect consumers’ crypto funds, including enhancing infrastructure, implementing proof of reserves, and utilizing innovative technology.
According to studies, the majority of people are unable to effectively secure even their keys, which causes them to lose their crypto assets.
He claims some minor concerns with CeFi and DeFi, such as security issues with DeFi wallets.
Additionally, he responded to inquiries about managing shareholders’ trust and establishing trust in CeFi enterprises.
Most blockchains’ trustless technology fosters some level of user confidence regarding safety and security.
According to CZ, since most crypto community uses Binance, it enjoys high consumer trust.
Self-regulation is crucial, and nations, banks, and businesses face some hazards.
The user experience provided by cryptocurrency exchanges can significantly improve Web3 onboarding.
While Web3 has different difficulties from Web2 regarding user experience and KYC, these issues exist.
CeFi is more popular because of its specific features, like passwords.
Binance prioritizes web3 security and has made constant improvements to the user experience.
To boost confidence, the exchange also makes use of vendor and regional government solutions.
CeFi is not antagonistic to DeFi, according to Binance’s CEO.
Some degree of centralization is compatible with decentralized platforms, despite the fact that DeFi and CeFi are not identical.
Binance connects the two markets, CeFi and DeFi, by offering products and services that address the needs of both.
There’s no rivalry here; opinions on CeFi and DeFi can differ.
According to him, determining what will set off the next wave of crypto and blockchain adoption is extremely challenging.
Mass adoption is triggered by different factors at different times; for instance, ICOs in 2017 and NFTs in 2021.
CZ also brought up the importance of clear regulations, adding that “using enforcement to control crypto is bad.”
Cryptocurrency is not like traditional banking, and regulators must recognize this.
Regulators need a thorough familiarity, but few of them have any prior crypto knowledge.
