Recently, Changpeng Zhao, the CEO of Binance, spoke at length about the DeFi and CeFi confluence opportunities. In his address at the first-anniversary conference of BSC, Zhao mentioned the negatives of a partisan attitude towards crypto. He said that crypto advocates are taking the pro-decentralization stance and regarding conventional banking as evil, which will only go on to stall crypto’s progress. He further added that for cryptocurrencies to grow and innovations to thrive, there must be a meeting point for decentralized and centralized finance.
According to Zhao, Binance is aiming to bridge the gap between centralized and decentralized finance through inventions and innovations. In his address, Zhao stated that 1% of the global population is active in the crypto market. However, he suggested that for wider crypto adoption, regulations are required. He also added that the regulatory body/bodies need to have physical headquarters and their entity structures need to be centralized.
Zhao’s words reflected the idea that there’s a lot to learn for CeFi and DeFi from one another. If crypto does indeed have a role to play in our lives’ practical aspects, he said that the interaction between cryptocurrencies and FIAT currencies need to be greater than what currently exists.
While it’s unclear as to how Zhao and Binance will bridge the gap, one thing’s for sure – for crypto innovation to be at its peak, the benefits of decentralization have to be combined with the benefits of centralization. At the same time, it’s also necessary to offer more security and rewards for investors.
