A few days ago, CZ, the founder of Binance, was a guest on The Money Movement column of Circle CEO Jeremy Allaire and had a conversation for nearly an hour. The two sides did not talk about Stablecoin-related content, but from a broader perspective, they talked about the impact of blockchain on the world.
Starting from 2020, the world will change like opening a Pandora’s box. While we pay attention to various track projects in the industry, it is also necessary to obtain information on macro development. Rhythm BlockBeats listened and translated the dialogue between the two as follows, hoping to help readers.
Jeremy Allaire: Hello, I’m Jeremy Allaire, welcome to The Money Movement, and I’m really looking forward to our conversation today. Welcome, CZ.
CZ: Nice to be here, thank you for having me.
Jeremy: First of all, I would like to talk about your reasons for choosing this industry and your vision for the future. I think each of us has our own story, and when we come to the Crypto market, we want to do something, such as building a new global financial system, a new economic system, or a new way of world economic activity. I would love to hear your opinion, what do you think Crypto will bring to the world? How will the world change due to the development of Crypto in the next ten years?
CZ: Fundamentally, I think the Crypto blockchain is a new technology, a ledger system for building trust. However, just like the first application of the Internet was only for the exchange of information, Crypto started only with monetary attributes. I think with Crypto, we can improve our existing currencies, thus the financial sector and fintech. Our current currency system has many flaws, and in my opinion, we need to improve the efficiency of transactions while maintaining compliance, security, and ease of use. Because, we need to advance the development of Crypto technology and give people the opportunity to use this new technology.
Jeremy: I’d love to hear your thoughts on the growing number of Crypto-native businesses and native organizations. At present, the system of global economic activity is basically established according to the laws of nation-states and multinational corporations. The blockchain public chain connects many isolated financial systems to facilitate people’s bookkeeping and governance. As new businesses and projects grow, and Binance plays a very big role in supporting them, what do you think of these new organizational forms? How will the world change when people start using the blockchain to run capital and perform labor?
CZ: The topic you brought up is very interesting. Binance wanted to be a decentralized organization in the beginning, but it didn’t quite do it. We didn’t call ourselves a DAO or a so-and-so company, because we felt that after putting aside these human terms, our essence is a team, a group of people working together in an incentive system and mutual trust to complete tasks.
In terms of company form, Binance may be one of the first startups to have branches in 180 different countries, largely thanks to the internet and blockchain. In the beginning, we were only responsible for processing Crypto transactions, allowing people to deposit and withdraw money through the blockchain here. The employment agreement we issue for our employees is very straightforward, and its binding force is mainly based on mutual trust, and it will explain the company shares or Token remuneration they can get after completing the work.
As long as people have that trust, they no longer need a legal document. We don’t need to have actual companies, offices, headquarters, etc. that traditional companies have to get the job done. But recently we also made a centralized change, because when we wanted to touch the traditional financial system, they would ask us for licenses, registration information, and three years of the company’s financial statements. While we don’t really need these things, we do it anyway to meet the demands of regulators.
Today, we can organize without traditional structures, because now you can use the blockchain to make payments. Then, in the next step, any type of organization, including nations and countries, can be organized in this way, and national taxation, public services, etc. can now be built using blockchain technology.
Jeremy: I agree with you that after removing some unnecessary human factors, these new forms of organization will be able to operate in a more efficient way, creating more jobs around the world and enhancing communication between people . In my opinion, within the next five years, blockchain organizations will be the fastest growing organization in the world.
I know that Binance spends a lot of time communicating with authorities, explaining the development of emerging technologies for them, and investing a lot of energy. Can you tell us what everyone thinks of Crypto as you travel around the world?
CZ: At present, people’s attitudes towards Crypto are very different. Some people still think that Bitcoin is only used by big drug lords; while some people think that it is the future currency technology and the driving force of the future financial technology. Sectors all matter – and that’s how most people think these days.
Jeremy: People’s attitudes towards Crypto have changed a lot.
CZ: Yes, it has changed a lot, and people in many places want to bring Crypto into the local economy without upsetting local authorities. Interestingly, however, the traditional financial industry is more resistant to this change because they need to protect existing banks and financial institutions. Last month I went to Latin America and found that a lot of countries there are using the dollar, 30% of the population works in banks and they have nothing to protect.
Jeremy: In some cases they can leapfrog, right?
Jeremy: They would say, “Since this is a more advanced financial system, economic engine, and capital market structure, why don’t we just bring it in?”
CZ: Crypto businesses will bring more employment opportunities, and can also introduce other Crypto elements into the local economy, but also need to pay taxes. These companies can build a talent pool for the local area, which is very beneficial to the future development of the region’s economy.
If you look at the richest people in the world today, you will find that 9 of the top 10 are in the US and 8 are in Internet companies: Google, Facebook, Tesla, Amazon. The United States has indeed contributed a lot to the development of the Internet, and the Internet also knows no borders. Some companies provide the world with very good Internet infrastructure. As the blockchain continues to grow, multiple blockchain companies will also provide people with multiple tools. Many visionary countries want to attract these companies, so there will definitely be competition. Authorities in various countries do not want to be the vanguard of taking risks, but they also do not want to be the last.
I was chatting with my friend the other day and he said that he expects that in five to seven years, countries all over the world will adopt Crypto. But I retorted, “No, if no one has acted, it will take longer.” Now some authorities have begun to act, so not to be outdone, the United States issued an executive order a month ago. The UK now wants to be a Crypto hub and El Salvador is far ahead in this regard. Now for any authority, the risk of adopting Crypto is decreasing.
Jeremy: So, for the authorities of various countries, Crypto is not just a matter of regulatory risk, but a matter of opportunity. Over the years, I have spent a lot of time and energy speaking to White House officials about how Crypto has changed over the past nine years. Today, many countries are rushing to start accepting digital currency because it is related to national economy and competitive advantage. Authorities are now thinking about the role of stablecoins in the country’s financial system and have increased regulatory clarity, which is really a good thing.
At the same time, the geo-economic structure of the world is also changing, and we are in it, witnessing the formation of a new order and pattern. In fact, some of these have been brewing for a long time, and many Bitcoin players have seen these changes in the aftermath of the financial crisis. Not only that, the rise of China is also affecting the formation of the world pattern.
We call this new geopolitical landscape the new Cold War era. To some extent, digital currency will play an important role in this reconfiguration. In her speech yesterday by US Treasury Secretary Janet Yellen, she was also talking about this issue, which greatly shows that the attitude of the authority towards Crypto has changed a lot. After all, seven or eight years ago, if I had discussed this at an authority meeting, they would have ousted me and emphasized that the American authority would not consider adopting Crypto.
In your opinion, what role can Crypto play in maintaining global integration? Do you think that Crypto, blockchain and digital currency can in some sense help the world become better integrated.
CZ: I think it’s a very interesting and delicate topic. The world is divided and merged, and many different factions have emerged. Therefore, each country has different circumstances to consider. Currency is a very powerful tool for the authority of a country, because it will play a vital role in geopolitics. Great powers have this ambition, but it can also lead to conflicts, such as wars and sanctions, etc. .
The world structure is becoming divided, so people start to use currency to expand their international influence. Slowly, people started looking for a neutral currency to use, which is Crypto. Bitcoin is very neutral, it does not belong to any country, it is limited in quantity, and there is no inflation. Therefore, for companies that conduct global trade, to avoid having their accounts frozen by any country, using a neutral currency is the best solution. Of course, some might argue that Crypto disempowers them, and while this is true to some extent, Crypto also offers people a better alternative.
At present, the emergence of Crypto poses a threat to the global influence of the dollar, so the United States will fight against it for a long time to come. However, the result of this is that although the dollar can be protected to a certain extent, over time, many countries will still accept Crypto. So, since the dollar cannot be protected forever, it is time to embrace the future as soon as possible. Although the subversiveness of Crypto in many fields is not yet obvious, I believe that the development of blockchain will have great prospects in the future.
Jeremy: I think digital currency has become a strategic tool for the United States now. How would you communicate to them the strategic importance of Crypto, and the important role Binance will play in it, if you were talking to the U.S. Cabinet, the Treasury Secretary, the Secretary of State, the Attorney General, and the Director of the National Security Council?
CZ: I think the rationale for this is actually pretty simple. Suppose we go back 50 or 100 years ago and you had the best army in the world, but at the same time the airplane was invented, would you choose to introduce the airplane or keep the same size of the army? In my opinion, you have to introduce aircraft, and while your army may seem dwarfed at first, the introduction of technology is always the first priority. Any country or economy that does not embrace new technologies will be left behind.
However, there will always be some resistance to adopting new technologies as it puts some pressure on existing organizational forms. The US has mastered the Internet because it has mastered the companies that provide Internet technology, and now, the United States should also accept companies that provide Crypto technology. Binance is one of them, and we are one of the biggest players in this space. But now, the business of the US trading platform is still supported by banks.
Now, with the integration of the Automated Clearing House, we can debit users’ accounts every month. U.S. authorities are quite cautious about derivatives, products that generate interest, and many newer forms. I think at this stage, American authorities should be concerned about two things – anti-terrorism and anti-money laundering. This is clear. In addition, we will protect the interests of consumers by combating any crime such as fraud, hacking, illegal data fraud, etc.
In addition, we should maximize the independent development of industry personnel, formulate favorable policies, and attract international and local players to join the industry. I think that’s where Binance has the advantage, it’s very simple in concept, although there are some minor trade-offs to make in practice.
Jeremy: Thank you, CZ, it was a great conversation today, thank you for joining.
CZ: Thank you for inviting me. I also want to say, thank you for everything you have done in the United States, and hope that we can also contribute more to the development of Crypto in the United States in the future.
Jeremy: We fully support it.
CZ: Thank you very much.
Jeremy: Thank you, CZ.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cz-dialogue-circle-since-the-dollar-cannot-be-protected-forever-the-future-should-be-embraced/
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