Changpeng Zhao, founder of Binance, (CZ) talks about the future of the industry, delves into key topics such as stablecoins, RWA, DEX, DAT and the convergence of AI and Web3, and predicts the future of decentralized exchanges. This article is from an article written by MetaEra and was compiled, compiled and written by blockbeats. (Summary: Centralized exchanges "hit a 9-month low in trading volume", DEX market share rushed to 30%) (Background supplement: DEX market accounted for more than 25% "record high" in May, decentralized trading is becoming a trend? On August 27, at the "China Hong Kong Crypto Finance Forum", Changpeng Zhao, founder of Binance, the world's largest digital asset trading platform, (CZ) systematically expounded his forward-looking thinking on the future development of the industry. Changpeng Zhao (CZ) focused on five themes: the evolution of stablecoins and the strategic position of the US dollar, RWA's regulatory and liquidity bottlenecks, the potential of decentralized exchanges, the new investment direction provided by the crypto asset treasury (DAT) model for traditional investors, and AI Convergence with Web 3.0 will revolutionize the trading model. Changpeng Zhao's (CZ) views not only reflect his deep insight into the current industrial development, but also show his strategic thinking on the future pattern of digital finance. These insights have important reference value for understanding the development trends and investment opportunities of the crypto finance industry. The following is compiled according to the on-site views of Changpeng Zhao (CZ), and the author tries to keep the original sentence expression of CZ as much as possible. # Changpeng Zhao (CZ) Talking about stablecoins: from a "safe haven" for volatility to a global lever for the US dollar I'm not an expert in stablecoins, but the Binance platform hosts about 70% of the world's stablecoin trading volume, making us the most important stablecoin distribution channel in the industry. Let me give you a brief introduction to the history of stablecoins. The earliest prototype of stablecoin technology is "Colored Coins", which is the earliest "asset on-chain" solution explored by the Bitcoin community. In 2014, USDT was initiated by Brock Pierce, and the initial development of the project was flat, and then Pierce gradually withdrew, giving way to the current USDT team Craig Sellars and others, and there was still not much improvement until 2017. When Binance was founded in 2017, we focused on currency trading, supporting Bitcoin to Ethereum, BNB and other trading pairs, but lacked fiat currency trading capabilities. This creates a user experience problem: whenever the price of Bitcoin falls, users can only withdraw Bitcoin to other fiat exchanges to exchange it for fiat, and there is a great deal of uncertainty as to whether these funds will flow back to our platform. At the same time, it is also extremely unfriendly to the user experience. To improve the user experience, we decided to support USDT as a "safe haven" when the market falls. At the time, we understood stablecoins as a short-term store of value, so the decision to support USDT was relatively straightforward—no complex cooperation agreements or strategic collaborations, just a simple integration of the product. At this time, USDT ushered in its rapid development period: first of all, after 2017, the currency exchange entered a period of rapid development, and many platforms including Binance began to support USDT, which promoted the rapid growth of USDT. Subsequently, USDT ushered in a second wave of growth momentum: many Asian users have demand for US dollars, but have difficulties opening US dollar accounts directly, and USDT provides them with an alternative. Tether's profitability has always been outstanding, and they have kept a relatively low profile due to U.S. regulatory pressure and difficulties in working with banks. In 2019, the US compliance agency Paxos took the initiative to contact us and propose to cooperate in the issuance of stablecoins, which led to the later BUSD. From 2019 to 2023, BUSD's market capitalization grew to $23 billion, during which time we invested little resources, mainly in brand support and promotion activities, such as "free withdrawals" campaigns. In 2023, the U.S. government retired the BUSD project. If BUSD continues, there will be a good scale of development, because BUSD is growing faster than USDT and USDC at that time. It is worth emphasizing that when the BUSD project was closed, all user funds were completely refunded, which fully proves the characteristics of BUSD as a compliant, transparent and secure project. Stablecoins and exchanges have become one of the most central profitable sectors in the crypto finance sector. Its business model is highly simplified: after obtaining a compliance license, users deposit funds, and the platform can issue tokens; When users redeem tokens, the platform offers cash exchange. This model has low threshold, high liquidity and huge market potential, and has significant long-term profitability. From the perspective of national strategy, the US government's attitude towards stablecoins has changed significantly in recent years. The current U.S. administration is very smart and, with its business background, deeply understands the strategic value of Tether to the dollar's global position. More than 100 billion USDT funds currently buy U.S. Treasuries, and Tether is widely used worldwide. The point is that Americans don't need stablecoins themselves — they can trade dollars directly using the bank's ACH system. Almost all USDT users are outside the United States, which effectively expands the dollar's global reach. This is very much in line with China's desire to expand the influence of the renminbi internationally. Stablecoins are essentially tools to help the underlying currency globalize, which should be of great appeal to countries. Of course, as free-float blockchain assets, stablecoins do pose challenges to exchange controls, but these issues can also be solved. At present, more than a dozen countries I have contacted have shown strong interest in the development of local stablecoins, and everyone hopes that their fiat currencies can be put on the chain. When the United States passed the GENIUS Act in July, it proposed a policy direction to limit the development of central bank digital currency (CBDC), which reflects a far-reaching strategic layout for the global dominance of the dollar. The popularity of stablecoins is precisely because of their high degree of free liquidity and good user experience, and some government-led digital currencies may be more strictly regulated and monitored, which in turn will affect market acceptance. In fact, since 2014, more than 20 countries have tried to issue CBDCs, but none have really achieved market-level success. Blockchain technology is essentially a ledger technology, and its first application scenario is finance, so stablecoins are a natural application of blockchain technology. At present, we only see that the development of US dollar stablecoins is relatively mature, and the stablecoins of other countries' currencies have not yet risen, which means that the future growth space of this track is extremely huge. Now, every country wants to develop a stablecoin business. I think every country should have at least a few stablecoin products. # Changpeng Zhao (CZ) on RWA: The Triple Challenge of Liquidity, Regulation and Mechanism Although RWA ( real-world asset tokenization ) track has broad market prospects, its difficulty in landing is much higher than market expectations. The specific challenges can be summarized in the following three areas: 1. Liquidity dilemma From a practical point of view, products with strong financial attributes are relatively easier to tokenize, mainly because traditional gold ...
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CZ Full Speech: In 10 years, the scale of DEX will surpass CEX
Changpeng Zhao, founder of Binance, (CZ) talks about the future of the industry, delves into key topics such as stablecoins, RWA, DEX, DAT and the convergence of AI and Web3, and predicts the future of decentralized exchanges. This article is from an article written by MetaEra and was compiled, compiled and written by blockbeats. (Summary: Centralized exchanges "hit a 9-month low in trading volume", DEX market share rushed to 30%) (Background supplement: DEX market accounted for more than 25% "record high" in May, decentralized trading is becoming a trend? On August 27, at the "China Hong Kong Crypto Finance Forum", Changpeng Zhao, founder of Binance, the world's largest digital asset trading platform, (CZ) systematically expounded his forward-looking thinking on the future development of the industry. Changpeng Zhao (CZ) focused on five themes: the evolution of stablecoins and the strategic position of the US dollar, RWA's regulatory and liquidity bottlenecks, the potential of decentralized exchanges, the new investment direction provided by the crypto asset treasury (DAT) model for traditional investors, and AI Convergence with Web 3.0 will revolutionize the trading model. Changpeng Zhao's (CZ) views not only reflect his deep insight into the current industrial development, but also show his strategic thinking on the future pattern of digital finance. These insights have important reference value for understanding the development trends and investment opportunities of the crypto finance industry. The following is compiled according to the on-site views of Changpeng Zhao (CZ), and the author tries to keep the original sentence expression of CZ as much as possible. # Changpeng Zhao (CZ) Talking about stablecoins: from a "safe haven" for volatility to a global lever for the US dollar I'm not an expert in stablecoins, but the Binance platform hosts about 70% of the world's stablecoin trading volume, making us the most important stablecoin distribution channel in the industry. Let me give you a brief introduction to the history of stablecoins. The earliest prototype of stablecoin technology is "Colored Coins", which is the earliest "asset on-chain" solution explored by the Bitcoin community. In 2014, USDT was initiated by Brock Pierce, and the initial development of the project was flat, and then Pierce gradually withdrew, giving way to the current USDT team Craig Sellars and others, and there was still not much improvement until 2017. When Binance was founded in 2017, we focused on currency trading, supporting Bitcoin to Ethereum, BNB and other trading pairs, but lacked fiat currency trading capabilities. This creates a user experience problem: whenever the price of Bitcoin falls, users can only withdraw Bitcoin to other fiat exchanges to exchange it for fiat, and there is a great deal of uncertainty as to whether these funds will flow back to our platform. At the same time, it is also extremely unfriendly to the user experience. To improve the user experience, we decided to support USDT as a "safe haven" when the market falls. At the time, we understood stablecoins as a short-term store of value, so the decision to support USDT was relatively straightforward—no complex cooperation agreements or strategic collaborations, just a simple integration of the product. At this time, USDT ushered in its rapid development period: first of all, after 2017, the currency exchange entered a period of rapid development, and many platforms including Binance began to support USDT, which promoted the rapid growth of USDT. Subsequently, USDT ushered in a second wave of growth momentum: many Asian users have demand for US dollars, but have difficulties opening US dollar accounts directly, and USDT provides them with an alternative. Tether's profitability has always been outstanding, and they have kept a relatively low profile due to U.S. regulatory pressure and difficulties in working with banks. In 2019, the US compliance agency Paxos took the initiative to contact us and propose to cooperate in the issuance of stablecoins, which led to the later BUSD. From 2019 to 2023, BUSD's market capitalization grew to $23 billion, during which time we invested little resources, mainly in brand support and promotion activities, such as "free withdrawals" campaigns. In 2023, the U.S. government retired the BUSD project. If BUSD continues, there will be a good scale of development, because BUSD is growing faster than USDT and USDC at that time. It is worth emphasizing that when the BUSD project was closed, all user funds were completely refunded, which fully proves the characteristics of BUSD as a compliant, transparent and secure project. Stablecoins and exchanges have become one of the most central profitable sectors in the crypto finance sector. Its business model is highly simplified: after obtaining a compliance license, users deposit funds, and the platform can issue tokens; When users redeem tokens, the platform offers cash exchange. This model has low threshold, high liquidity and huge market potential, and has significant long-term profitability. From the perspective of national strategy, the US government's attitude towards stablecoins has changed significantly in recent years. The current U.S. administration is very smart and, with its business background, deeply understands the strategic value of Tether to the dollar's global position. More than 100 billion USDT funds currently buy U.S. Treasuries, and Tether is widely used worldwide. The point is that Americans don't need stablecoins themselves — they can trade dollars directly using the bank's ACH system. Almost all USDT users are outside the United States, which effectively expands the dollar's global reach. This is very much in line with China's desire to expand the influence of the renminbi internationally. Stablecoins are essentially tools to help the underlying currency globalize, which should be of great appeal to countries. Of course, as free-float blockchain assets, stablecoins do pose challenges to exchange controls, but these issues can also be solved. At present, more than a dozen countries I have contacted have shown strong interest in the development of local stablecoins, and everyone hopes that their fiat currencies can be put on the chain. When the United States passed the GENIUS Act in July, it proposed a policy direction to limit the development of central bank digital currency (CBDC), which reflects a far-reaching strategic layout for the global dominance of the dollar. The popularity of stablecoins is precisely because of their high degree of free liquidity and good user experience, and some government-led digital currencies may be more strictly regulated and monitored, which in turn will affect market acceptance. In fact, since 2014, more than 20 countries have tried to issue CBDCs, but none have really achieved market-level success. Blockchain technology is essentially a ledger technology, and its first application scenario is finance, so stablecoins are a natural application of blockchain technology. At present, we only see that the development of US dollar stablecoins is relatively mature, and the stablecoins of other countries' currencies have not yet risen, which means that the future growth space of this track is extremely huge. Now, every country wants to develop a stablecoin business. I think every country should have at least a few stablecoin products. # Changpeng Zhao (CZ) on RWA: The Triple Challenge of Liquidity, Regulation and Mechanism Although RWA ( real-world asset tokenization ) track has broad market prospects, its difficulty in landing is much higher than market expectations. The specific challenges can be summarized in the following three areas: 1. Liquidity dilemma From a practical point of view, products with strong financial attributes are relatively easier to tokenize, mainly because traditional gold ...