Changpeng Zhao, better known as CZ and the former CEO of Binance, made waves at Token2049 Dubai with a strong message: crypto, DeFi, and AI are the future—and governments need to catch up.
Speaking during a lively fireside chat with macro investor Raoul Pal, CZ offered rare insight into his new role as a crypto consultant. Now free from corporate obligations, CZ is advising governments on how to responsibly adopt crypto and build long-term infrastructure.
Localized Crypto? Not So Fast, Says CZ
One of CZ’s main takeaways: countries are eager to build their own crypto ecosystems, including local wallets, exchanges, and even cold storage. But he warned that trying to fully localize everything isn’t realistic—or secure.
“For each cold wallet, you need 15 trusted signers,” CZ explained. “Finding those people in every country is nearly impossible. They’re not incentivized by money—they’ve already got great jobs and lives.”
The same challenges apply to setting up national exchanges and order books. According to CZ, fragmenting liquidity across countries will only hurt the market, especially during times of high volatility.
“If every country runs its own order book, liquidity dries up fast. And when volatility hits, local markets could spiral out of control,” he said.
National Crypto Reserves: Bhutan Leads the Way
CZ also touched on a growing trend—nations adding crypto to their reserves. He praised Bhutan’s early move to mine Bitcoin using surplus clean energy, calling the Himalayan kingdom a “smart and forward-thinking” example.
More countries are expressing interest in holding crypto as a reserve asset, and CZ urged them to start small but act soon.
“If you wait, you’ll be buying Bitcoin at much higher prices,” he warned, recommending third-party custodians and cold storage as the portfolio grows.
From Hype to Utility: The Real Role of AI in Crypto
CZ also pushed back against the current wave of AI + token projects. While AI is undoubtedly powerful, he believes most of today’s AI tokens serve no real purpose.
“There are thousands of AI tokens out there with no real agent behind them. They’re just hype,” he said.
Instead, CZ called for a shift in focus toward building useful AI agents—tools that actually solve problems and interact with users meaningfully.
He stressed that crypto will become the default currency of the AI economy.
“AI doesn’t swipe cards or wait for SMS codes. It’ll transact in crypto—it’s fast, programmable, and global.”
Key Takeaways:
- CZ urges governments to avoid fully localized crypto systems due to security and liquidity risks.
- Bhutan is ahead of the curve in using crypto for national reserves.
- Real utility—not just token hype—should be the focus for AI and crypto integration.
- CZ predicts crypto will be the standard for transactions in an AI-driven future.
