CZ Binance Touches on the Intersection of Centralized Finance and Decentralized Finance

Binance CEO, Changpeng Zhao spoke about the opportunities that lay between CeFi and Defi during BSC’s first-anniversary conference.

By
Dardania Havolli
on
September 1, 2021
Category:
BSC News

Bridging Financial Worlds

CZ was unequivocal about the fact that the ‘bank accounts are evil’ rhetoric and complete decentralization is, at best, an oversimplification. The partisan attitude may even hinder the progress of crypto.

Zhao explains that in the intersection of these two vastly different worlds is where true innovation takes place. 

“Many inventions, many innovations, and many world-changing pushes happen at the boundary of the two different worlds, and we want Binance to be at that boundary.” CZ told us during BSC’s First Anniversary Conference on the 1st of September.

His ideas suggest that in the intermingling of these two worlds lay the know-how to design a better future and the material means to attain it. 

(Source)


FIAT Dominant

The Binance CEO talked of how around 1% of the world’s population is involved in crypto. The vast majority of those people have a small portion of their net worth invested, meaning somewhere around 0.1% value floods to cryptocurrency.  

The suggestion is that people still feel more comfortable with email passwords rather than private keys, it is difficult to argue against this. We can assume that it’s not a case of passwords over private keys, but rather the institutions that back them. 

To be able to tap into the larger market and gain serious adoption, CZ explained that regulations require a headquarters and a centralised entity structure. 

For your crypto to interact with the practical aspects of our lives there needs to be more interaction between FIAT and crypto. The idea being that DeFi and CeFi can stand to learn from one another. 

Whether that means bolstering security or offering users more for their buck, we will have to wait and see. But for CZ it was clear, innovation demands decentralization, people need freedom to come up with life-altering advances.

(Source)


CZ Surprised by Binance Smart Chain Growth

A huge part of why DeFi has had such an incredible year is the success of Binance Smart Chain. 

The pace at which BSC has moved has surprised both CZ and its creators, who had initially told the Binance Chief that their goal was to become a top 10 transaction blockchain within 3 or 4 years. They achieved this in 6 months. 

“[BSC] far exceeded my expectations, I didn’t know there were going to be this many projects on the chain already.” CZ revealed.

Indeed there has been an incredible array of projects who have been allowed the opportunity to flourish through the decentralization we are talking about. 

It has been an incredible first year for Binance Smart Chain and we are excited to see it keep growing and offering a platform for positive ideas.  

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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