At the Token2049 conference in Dubai on April 30, Binance founder Changpeng Zhao (CZ) spoke with Raoul Pal in a fireside chat about how governments are approaching crypto, how AI will change the economy, and what countries need to do to keep up.
CZ reported that numerous nations are requesting his guidance on how to develop their own crypto systems, such as wallets, exchanges, and storage. Nevertheless, he cautioned that the development of fully localized systems is not feasible or secure.
Cold wallets to store crypto securely require around 15 reliable signers to sign any transaction. Finding such reliable people, who aren’t public, who don’t want more money, and who live in different regions, is very difficult.
Exchanges and order books (where buy/sell orders are listed) also shouldn’t be split country by country. CZ explained that if each country builds its own small trading platform, it would hurt liquidity (the ability to trade quickly and fairly). During big price movements, this could cause more chaos.
CZ encouraged governments to start buying crypto for their reserves now rather than later, when prices may be higher.
He highlighted Bhutan as a positive example, a small country using its extra hydro energy to mine Bitcoin. Their king is forward-thinking, and Bhutan is now using crypto to build wealth sustainably.
CZ advised countries to begin with small allocations, using professional custody services at first, then shift to more secure cold storage as their holdings grow.
CZ also discussed how AI and crypto will work together in the future economy. CZ criticized the flood of useless AI tokens, calling for AI agents with real utility that genuinely help users. He emphasized that in an AI-driven future, crypto will be the default currency, saying, “The currency for AI is crypto.”
He discussed the challenges Binance faces in navigating regulatory hurdles with governments and agencies worldwide. CZ shared insights on how the exchange approaches these complex relationships, emphasizing the need for transparency and collaboration.
In conclusion, CZ called on countries to treat crypto as a strategic asset, and not as an experiment in technology. By eschewing splintered systems and getting ready for an AI future where crypto is the default currency, governments can position themselves to be part of the new digital economy.
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