The head of the bitcoin exchange Binance Changpeng Zhao, during an AMA-session on X, said that the DeFi sector has the potential to surpass centralized finance (CeFi) in the next crypto rally. This was reported by Cointelegraph.
“DeFi is the future; its share is around 5-10% of CeFi’s metric, which is not insignificant. … The next bull market could well make DeFi bigger than CeFi,” Zhao said.
He is convinced that the more decentralised the crypto industry becomes, the better. The Binance CEO also welcomed the court’s dismissal of the class-action suit against Uniswap. DEX was accused of selling unregistered securities.
“Developers write code, that code is freedom of speech. So development is indeed good,” Zhao said.
In Zhao’s view, every country needs cryptocurrency, but some have a sharper need than others. Those seeking to maintain leadership in financial innovation will have to embrace the digital asset industry, he added.
In July Zhao shared plans for the future to mark the exchange’s sixth anniversary. He noted the arrival of institutional players such as BlackRock, Valkyrie and Fidelity Investments and called this a “tech and industry test.”
Zhao also spoke of the emergence of a clearer regulatory framework, but noted that the adoption of digital assets is happening at different paces around the world.
Earlier this August, the Binance CEO criticised the stablecoin USDT, describing it as a “black box” with a “certain” level of risk. He is cautious about the asset due to a lack of transparency.
Earlier, it was announced that Binance will discontinue support for its own stablecoin BUSD by February 2024.