Binance CEO foresees DeFi outgrowing CeFi in 6 years, despite regulatory hurdles

Binance CEO Changpeng ‘CZ’ Chao predicted in a speech on July 14 that decentralized finance (DeFi) will rise above centralized finance (CeFi) within the next six years. statement In honor of the exchange’s 6th anniversary.

According to Zhao, DeFi activity will continue to accelerate as more people use DeFi products and interact directly with blockchain networks. He added that DeFi will provide financial access to those who do not have access to traditional financial institutions such as banks.

Zhao further pointed out that the recent wave of institutional interest in cryptocurrencies proves the legitimacy of the industry and its technology. CZ said these companies will facilitate the institutional adoption of cryptocurrencies, adding:

“Institutional investors own the majority of the trillion-dollar stock market, so even a single-digit conversion rate to cryptocurrency could easily multiply the size of the current cryptocurrency market. ”

Binance ready to cooperate with regulators

Zhao, meanwhile, revealed that Binance is ready to follow regulators despite the ongoing battle with regulations around the world recently.

Over the past month, Binance has faced increased regulatory scrutiny on multiple fronts. The exchange is under investigation in Australia and has been sued by US financial regulators. It has also exited several markets in Canada and Europe.

Zhao said regulation is “the cornerstone of a robust, safe and secure cryptocurrency environment.” He said:

“Globally, we have proven that compliance and innovation can coexist. It is a testament to a broad range of efforts in the field.”

Zhao added that regulatory transparency and regulated exchanges will continue to grow, stressing that Ripple’s recent wins are an indication of how far the industry has come.

CZ stresses that Binance’s exposure to last year’s market downturn is minimal

Zhao stressed that Binance had been minimally exposed to “catastrophic” events over the past year, suggesting that the initial $3 million investment in Terra 2018 will grow to $1.6 billion by the time the market peaks in 2021. He pointed out that after the bankruptcy, it plummeted to zero.

Zhao also said Binance has no exposure to bankrupt crypto companies such as Three Arrows Capital, FTX crypto exchange, crypto finance firm Genesis and Celsius.

The Binance CEO added that Binance.US’ attempts to save the bankrupt Voyager have failed despite the exchange’s $10 million security deposit.

Also today, wall street journal Binance has reportedly laid off about 1,000 employees in recent weeks.

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