CZ: DeFi Will Outpace CEX as AI and Blockchain Redefine Finance

Changpeng Zhao, known as CZ, the founder and former CEO of Binance, made a series of key statements during the fifth-anniversary celebration of the BNB Chain in Tokyo, outlining his vision for the current state and future of the cryptocurrency sector. CZ emphasized that the cryptocurrency ecosystem is still in its early stages, drawing parallels to Bitcoin's development during its formative years when liquidity was minimal and volatility was extreme. He noted that the user base and market liquidity in crypto grow gradually over time, requiring patience and long-term investment strategies [1].

CZ highlighted the need for sound strategies in ecosystem growth, stating that liquidity and user base expansion must be built step by step. He underlined the importance of cultivating a small, loyal user base initially and scaling strategically. This gradual approach, according to CZ, is essential for long-term success and market stability. He also stressed the importance of timing and investment precision when entering the market [1].

A significant portion of CZ’s remarks focused on the role of financial products and strategic partnerships in facilitating wider adoption. He pointed to stablecoins and real-world assets (RWAs) as pivotal in reaching broader audiences. CZ noted that stablecoin usage has nearly doubled in the past year, while RWAs, though still facing regulatory and liquidity challenges, are starting to gain traction. He also acknowledged the potential for tokenized assets, including securities, treasuries, and commodities, to drive significant growth in the sector [1].

CZ reiterated his belief in the future dominance of decentralized finance (DeFi) over centralized exchanges (CEX). During the event, he stated that decentralized exchanges (DEXs) are poised to surpass centralized exchanges in trading volume, driven by advancements in blockchain and AI integration. CZ emphasized that DeFi represents the future of financial systems and that privacy-preserving trading should become the standard. He also expressed confidence in the potential for AI-powered trading agents and decentralized perpetual exchanges to transform the industry [2].

Beyond Binance, CZ pointed to Japan's growing influence in the Web3 landscape. He praised Japan Post Bank’s plans to issue a digital currency (DCJPY) in fiscal 2026, which aims to convert ¥190 trillion in deposits into digital money for blockchain-based asset trading. This initiative, CZ noted, could significantly enhance trading efficiency by enabling instant settlement of tokenized securities and embedding digital currency into daily financial activities. The move aligns with broader global trends, as the tokenized RWA market is projected to grow from $600 billion in 2025 to $18.9 trillion by 2033 [3].

In addition to his economic insights, CZ reflected on the role of community in the success of blockchain projects. He described himself as a "cheerleader" for the BNB Chain, emphasizing the chain's community-driven nature. With over 4,000 active decentralized applications, the BNB Chain has become one of the largest ecosystems in the industry. CZ advocated for ethical AI use and warned against the dangers of using AI competitively to "outdo anyone," which he described as a potentially dangerous path [3].

Source: [1] Binance Founder CZ Makes Exclusive Statements on the Current State and Future of the Cryptocurrency Sector (https://en.bitcoinsistemi.com/binance-founder-cz-makes-exclusive-statements-on-the-current-state-and-future-of-the-cryptocurrency-sector/) [2] CZ Backs DeFi Dominance As Japan Post Bank Unveils ... (https://www.mitrade.com/insights/news/live-news/article-3-1083140-20250901) [3] Binance's CZ Breaks Silence on DEX vs. CEX Rivalry, ... (https://u.today/binances-cz-breaks-silence-on-dex-vs-cex-rivalry-picks-future-winner)