Categories: Crypto

“We Need To Change Crypto Industry Into AI-enabled Industry,” Insists CZ

“Unfortunately, this industry happened before AI, so we need to change this industry into an AI-enabled industry,” said Changpeng Zhao (CZ), the founder of Binance, at the Token2049 event in Dubai on 30 April 2025. Speaking on the future implications of AI, CZ iterates that AI will completely revamp the user experience when it comes to interaction with the blockchain.

CZ said he would like to see AI agents with real utility rather than flooding the market with useless AI agents. He expressed concerns about the growing trend of AI token launchpads, which enable users to create token-backed AI agents with a single click. “99.99% of them are useless,” he said.

He explained that currently, of 8 billion people in the world, AI generates 300 trillion-word tokens, which is still only 10%. In the future, however, AI will generate 10 times more of what it is currently generating, explained CZ.

“The AI will be trading with each other. They will be paying each other,” he stated.

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Regulating Everything Locally Is Not The Way To Go

CZ explained that the discussion surrounding countries adopting crypto and blockchain into their financial landscape is now more advanced than it was before, as they encounter distinct challenges in their pursuit of blockchain and cryptocurrency adoption.

An example CZ cited was the expectations of some countries to regulate everything locally, in terms of local custody wallet solutions, local order book, local teams, etc. However, that is not usually the best route to take.

Further elaborating, he said, setting up local custody solutions for billions of dollars requires a lot of funding and expertise, which is currently lacking. “For each cold wallet, you need 15 signers,” he stated.

“You can’t find 15 signers that are not public, that are extremely trustworthy in different parts of the world, in different geographies. They’re not incentivised by more money. They have a steady job, they’re high-income, they have a nice family. You just can’t find a hundred times more of those 15 people,” he explained.

Regarding local order books he emphasized, “If you divide each country with their own order book, liquidity is going to suck.”

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Europe Seems To Be “Missing On The Map”

Highlighting Bhutan as a standout example, CZ iterated that the countries that get into holding crypto reserves sooner rather than later will be better off since the price of crypto assets such as Bitcoin will only go up.

Bhutan, he stated, has been mining Bitcoins with its surplus clean energy for years as an early crypto adopter and has recently ventured into mining Ethereum as well. The country currently holds Bitcoins, Ethereum and Binance Coin in their strategic reserves.

“The early adopters are moving forward,” he said, talking about countries adopting a crypto reserve doctrine. He reiterates that since the US, as the world’s largest economy, holds crypto reserves, it forces other economies to get on board with the program as well.

According to him, countries with smaller allocations towards crypto use professional custody solutions and adopt secure cold storage as their investment as this asset class scales over time.

When asked where he sees Europe in this equation, CZ replied “nowhere”. Although he said that Montenegro is an outlier. On the macro scale, however, Europe seems to be “missing on the map.”

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