Binance CEO CZ predicts that DeFi and DEXs will overtake centralized exchanges in the long run. Speaking in a recent podcast, CZ advised investors about the bear market.
Binance CEO Changpeng Zhao makes a 10-year forecast for DeFi
In a new interview on the Bankless YouTube channel, Binance CEO predicted that within 10 years, decentralized blockchain projects will rise above centralized finance (CeFi) and centralized exchanges (CEXs). In part of the podcast, CZ made the following statements:
I think in five or 10 years, decentralized exchanges (DEX) will be bigger than centralized exchanges (CEX)… In 10 years maximum, DEXs and DeFi will be bigger than CeFi.
Zhao (CZ) also believes that centralized crypto protocols will eventually be surpassed by decentralized ones. However, he says he still believes in a future where these can coexist, as many people will prefer traditional methods to access their accounts. CZ’s statements on this subject were as follows:
I think it will take a long time for centralized exchanges to go to zero. But it will take five [or] 10 years [before] for DeFi to be larger than centralized exchanges. However, centralized exchanges will continue for decades to come.
As for why DEXs are more favored, CZ lists a number of factors for this:
I think there are still many people who are much more comfortable using an email and password. If you ask my parents’ generation, they would rather use a USB stick [email and password] to do encrypted backups of their private keys in a distributed fashion… I think technology will get to a point where decentralized things will be much more useful. It’s actually easier to use because you don’t have to do KYC [know your customer arrangements]. You don’t have to do all these very tedious operations. You can have your own control over your wallet.
CZ’s statements were appreciated by Michael Saylor and Nayib Bukele
As quoted by Kriptokoin.com, CZ said on the same podcast that current prices are an opportunity to invest. In addition, these statements of CZ were appreciated by Michael Saylor and Nayib Bukele. Yesterday, El Salvador’s president, Nayib Bukele, reported on Twitter that the country had purchased 80 Bitcoins at $19,000. Bukele also says the country has not been affected by the recent decline. On July 1, Nayib Bukele’s statements on Twitter were as follows:
Bitcoin (BTC) will come. Thanks for selling it cheap.
Finally, Bitcoin price entered the weekend in the $19,000 band, according to TradingView data. However, among the highlights of the day is Coinbase stopping BTC sales.
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