CZ at Bitcoin Asia: The million-dollar Bitcoin is coming soon, and tokenization is driving industry growth

Compiled by: Yuliya, PANews

In a special fireside chat at the Bitcoin Asia Conference, Kevin, host of the "When Shift Happens" podcast, engaged in an in-depth conversation with Binance founder Zhao Changpeng (CZ) about the "Bitcoin Century." The two discussed everything from price predictions to payment applications, national strategic reserves, and the integration of AI and crypto. CZ candidly stated that a million-dollar Bitcoin "will happen soon," but emphasized that large-scale practical scenarios are more critical. He analyzed the differing attitudes of governments around the world, suggested establishing a regulatory framework for crypto and strategic reserves, and shared progress from places like the UAE, Hong Kong, and Pakistan. The conversation provided honest and forward-looking answers regarding what currency AI agents will use, the relationship between Bitcoin and altcoins, and the contributions CZ himself hopes to leave behind. Below is the transcript of the conversation:

1. What constitutes a true "Bitcoin Century"?

Kevin: We are calling this the "Bitcoin Century." What needs to happen in the next 25 years for you to look back and say, "That was indeed the Bitcoin Century"?

CZ: I believe that Bitcoin reaching one million dollars will be an important milestone, and it will happen.

However, I don't think it will take 25 years. It might happen much sooner.

But compared to price, I value practicality more. We need to see Bitcoin payments happening on a large scale, and we need to see Bitcoin become part of pensions, retirement funds, and reserve assets. All these things will happen, and there will be more developments.

If we look at a 25-year cycle, I believe all of this will be realized.

2. What changes are people underestimating?

Kevin: What is the biggest underestimation people have today in understanding this transformation? What do people not fully realize if we want this century to truly be the "Bitcoin Century"?

CZ: A whole century is a very long time. People often overestimate what they can achieve in a year but underestimate what they can achieve in ten years. A hundred years is even longer.

Even looking just at the next ten years, I believe a lot of infrastructure will be built. In the past two years, we have already seen a huge shift in traditional finance's attitude towards Bitcoin. In the past year, even in the last few months, tokenized stocks have started to grow rapidly.

This is just the beginning. For example, some tokenized stock projects have only been launched for two or three months and have already seen rapid growth. From a ten-year perspective, this will become a huge field. And this is just one direction.

In the next ten years, there will be significant changes in payments, AI, financial infrastructure, stablecoins, tokenization, and many other areas. We are actually at one of the best historical moments, with many opportunities ahead; the key is to seize them.

3. How do tokenization and payments drive Bitcoin?

Kevin: You mentioned tokenization and payments. How are they related to the success of Bitcoin?

CZ: They are mutually reinforcing.

Today, the Bitcoin blockchain itself does not primarily carry tokenization; many tokenized assets occur on other blockchains. But in the crypto industry, things that are beneficial to Bitcoin are usually also beneficial to other areas; conversely, things that benefit other blockchains or other sectors will also help Bitcoin.

Those who understand Bitcoin may eventually understand other blockchains and other tokens; and those who enter the crypto platform through tokenized stocks may also eventually come into contact with Bitcoin.

For example, in Asia, many people want to buy U.S. stocks, but opening a U.S. brokerage account is very difficult. Even if they can open an account, trading hours are inconvenient, often requiring trading between 11 PM and 4 AM.

If stocks are tokenized, it will allow more people to access the U.S. stock market equally. They can purchase assets that were previously hard to reach through crypto platforms. Once they enter the crypto platform, they are likely to come into contact with Bitcoin. Over time, this influence will compound.

So, tokenized stocks are beneficial not only to the traditional stock market but also to Bitcoin. The entire industry is an ecosystem, not a competition between one project and another.

4. Will Bitcoin weaken or strengthen governments?

Kevin: Bitcoin was initially a technology aimed at individuals, but it is now becoming a strategic asset for institutions and even nations. Do you think Bitcoin will ultimately weaken governments or make those early adopters stronger?

CZ: Bitcoin itself will neither weaken nor strengthen governments. What truly determines the strength of a government is its own actions.

Some governments like to have more power and pursue total control. But historically, this has not always been the most beneficial for the economy and citizens. In many cases, governments with relatively weaker power may actually have stronger economic performance.

For example, the U.S. government. The U.S. is a large country, but relatively speaking, the power of the U.S. government is not particularly centralized. The presidential term is limited, and the two parties constantly debate; the process may seem inefficient, but this "weak government" structure may have actually facilitated the U.S. becoming one of the strongest economies in the world.

Regulation is similar. The U.S. SEC has relinquished some regulatory power in certain areas, stating that some matters are outside its jurisdiction, which is actually beneficial for industry development. In contrast, the previous SEC chair, Gary Gensler, wanted to bring many things under regulatory oversight, which actually hindered industry growth.

Bitcoin is a decentralized technology that indeed gives individuals more monetary sovereignty. However, Bitcoin's privacy design is not perfect, and on-chain transactions are very easy to trace, so it does not mean a complete escape from regulation.

Governments can choose how to treat it. If a country declares holding Bitcoin illegal, then it will be difficult for the industry to develop locally. If a country imposes a 36% tax on every transaction, it will also stifle the industry. The government may seem to have strong control, but if transactions go to zero, a 36% tax is also zero.

In contrast, if the tax rate is more reasonable, such as imposing 6% on a trillion-dollar market, that would be a very substantial income.

So, technology will not determine the government; how the government chooses to act is key. In countries where people can vote, it ultimately depends on the choices of the citizens.

5. How seriously do governments take Bitcoin now?

Kevin: How serious are governments around the world about Bitcoin today?

CZ: Most governments are relatively serious. However, many countries still do not have a regulatory framework for crypto, and only a few have truly established a complete framework.

There are indeed many people in the government who understand Bitcoin, but they may still be in the minority. Many governments are managed by an older generation, who tend to adopt new technologies more slowly and are more easily influenced by negative reports from traditional media, leading to a more conservative or even negative view of cryptocurrencies.

However, I do feel a shift. I have met many national leaders and politicians who increasingly recognize this as a new technology and realize the need to adopt it. Although some still carry biases, such as believing Bitcoin is mainly used for illegal transactions, more and more people are explaining to them that this is not the case.

6. Are governments genuinely adopting it, or just paying lip service?

Kevin: When you meet these national leaders, do you feel they are seriously considering Bitcoin, or are they just trying to keep up with the trend because they have to?

CZ: Almost every national leader I meet hopes for their country to become better.

But frankly, there are indeed some countries that are only doing it because they "have to." This situation is usually easy to spot: they will launch some framework, but it is often overly restrictive and more like a public relations move. The licensing approval and enforcement process is very lengthy, and it may even be nearly impossible to implement, resulting in nothing happening in practice.

On the other hand, those countries that invite me to visit are usually more progressive and genuinely want to adopt cryptocurrencies. So, by looking at which countries I visit, you can usually tell which countries are more friendly towards crypto.

7. Advice for governments: Establish a framework first, then promote reserves and stablecoins

Kevin: If you were to advise a major government today, what would you tell them about Bitcoin? What have they not done yet?

CZ: First, establish a regulatory framework for crypto.

But having a framework is not enough; it needs to be continuously evaluated: what works well, what doesn't, how to revise it, and how to improve it over time.

Currently, many regulatory frameworks mainly focus on a few directions. In recent years, the focus has often been on centralized exchanges; in the last year or two, many countries have started to pay attention to stablecoins. The increased focus on stablecoins is a good thing, as there has been much discussion around bills like GENIUS and CLARITY in the U.S.

In addition, many countries have not yet established crypto reserves. I usually advise them to establish crypto reserves because it is very important for the long-term development of the country.

Many countries also have not issued their own stablecoins. They need to bring their national currency onto the blockchain to capture local currency liquidity on-chain and promote the international use of their currency.

Another important direction is asset tokenization. In addition to stocks and traditional financial instruments, many countries are also discussing the tokenization of rare minerals, real estate, cultural, and artistic assets. They see tokenization as a way to attract capital into their country or allow overseas investors to purchase domestic assets.

8. Which countries are leading the way?

Kevin: Which countries do you think are doing the best in these directions?

CZ: Different countries are promoting different directions.

I believe the UAE currently has the most progressive crypto regulations. ADGM, or the Abu Dhabi Global Market, has issued a global license to Binance.com, allowing it to operate almost all products, which is a significant development. However, the UAE has not yet issued a major stablecoin, but I have heard that discussions are already underway there.

The U.S. is making more progress on stablecoins and is also focusing on exchange regulation. In the past, it mainly relied on MSB, or money services business licenses, and other frameworks. Now, my impression is that the CFTC is making rapid progress at the federal level, especially regarding futures and derivatives, which is very beneficial for the industry.

Japan is also making significant progress, and Hong Kong is developing rapidly. Singapore is relatively conservative today but is still taking action.

Pakistan is also advancing quickly. I just had a meeting with them. Pakistan's regulatory progress is fast, but the execution aspect has not fully caught up; for example, exchanges do not yet have local customer funds bank accounts. However, these matters are progressing, and they have not yet issued a stablecoin.

Kazakhstan is advancing very quickly, with good support from banks, and Binance Pay can collaborate with the widely used local QR code system. Kyrgyzstan will also see progress soon. I will visit both countries next week. Overall, many countries are indeed taking rapid action.

9. Which countries misunderstand Bitcoin?

Kevin: Is there any major government that has completely misunderstood Bitcoin?

CZ: I don't want to name specific countries and make them look bad.

But I believe many countries see Bitcoin as a dangerous thing. In fact, not using Bitcoin may be more dangerous because it means you are missing out on this trend.

This is similar to AI. Which country would not want to master AI technology? If a country does not invest in AI or promote the development of its own AI industry, that would be dangerous. AI itself certainly has risks, but using AI correctly can bring tremendous value.

Bitcoin and cryptocurrencies are the same. There are still some countries that have many misunderstandings about them.

10. Will Bitcoin become more important than gold?

Kevin: You mentioned strategic reserves. If Bitcoin becomes a national strategic reserve asset, will it ultimately be more important than gold?

CZ: Absolutely. I believe Bitcoin will definitely be more important than gold.

Of course, it takes time for major countries to make changes. Today, countries already have a complete set of mechanisms for evaluating and holding gold, and transitioning to Bitcoin or other crypto assets will take many years. But it will happen.

Bitcoin is a better asset than gold. Peter Schiff may not agree, and I have debated with him before, but I believe Bitcoin will be far more important.

11. Where might believers in Bitcoin over gold be wrong?

Kevin: Many people here have long believed that Bitcoin will surpass gold. Is there a possibility we could be wrong? Where might we be wrong?

CZ:

There is a very small possibility: that a digital currency better than Bitcoin emerges and surpasses Bitcoin before it surpasses gold.

But from what we see today, that probability is very small.

I believe Bitcoin will soon surpass gold. Currently, the gap between the two is about 10 times, and perhaps the next bull market could happen.

12. How should national reserves allocate crypto assets?

Kevin: If you were to allocate reserves for a country today, what percentage would you recommend they allocate to Bitcoin? Why?

CZ: My advice is very simple and a bit self-serving.

I usually recommend choosing the top five cryptocurrencies by market capitalization and excluding stablecoins, as the country may already have dollar reserves. Then allocate according to market cap weight.

This is the simplest, most direct, and most market-oriented approach.

With this allocation, there would typically be over 50% in Bitcoin, 10% to 20% in Ethereum, and BNB would also be included.

13. Why not allocate only to Bitcoin?

Kevin: From a Bitcoin perspective, I want to ask: why not recommend they allocate only to Bitcoin? After all, this is a Bitcoin conference, and many people here may be Bitcoin maximalists. If they understand Bitcoin, many might think that only Bitcoin truly matters.

CZ: I understand this viewpoint. The conference organizer, David Bailey, is a Bitcoin maximalist and also a good friend of mine.

But I believe that if the entire industry only had Bitcoin, the industry's growth would be much slower.

Other blockchains do not take value away from Bitcoin. The existence of Ethereum and other blockchains actually helps Bitcoin grow. Without other blockchains, Bitcoin might be smaller, not larger.

This industry is not a zero-sum game. Things that benefit Bitcoin will also benefit other blockchains; things that benefit other blockchains will also help Bitcoin in return.

Bitcoin has its unique value: it has the largest market cap, is the most decentralized, and will continue to serve as a reserve currency for a long time. But other blockchains have more experimental space and can try new things faster. If these innovations can be absorbed by Bitcoin in the future, that would be great.

In the early days, the entire crypto industry was actually referred to as the "Bitcoin industry," and it gradually became known as Crypto. In fact, the term Crypto is not friendly to the average person; it sounds a bit intimidating and too mathematical; the term Web3 is somewhat better. But the name itself is not the most important.

I believe we should promote the development of the entire industry. We need multiple blockchains, multiple exchanges, multiple DEXs, multiple perpetual contract DEXs, and innovations in multiple directions. Competition will bring more innovation and momentum.

The core of this industry is decentralization, so we should embrace "multiple everything" rather than turning it into a situation where one is against another.

14. What will drive the next cycle?

Kevin: In the past decade, we have proven that Bitcoin can exist. What will be the real driving force behind the next cycle?

CZ: Frankly, I'm not quite sure.

From now on, RWA and AI are both strong. Stablecoins will continue to grow, centralized exchanges will continue to grow, decentralized exchanges will also continue to grow, meme coins will continue to grow, and NFTs may return in some form.

Many areas will continue to grow, but it is difficult to predict what the next real hotspot will be. At the beginning of 2017, I would not have predicted the ICO boom; but six months later, ICOs became very important. Before the NFT craze, I also could not have predicted it would explode.

So, it is hard to predict the next hotspot. It depends on entrepreneurs and those present in the industry; they will create the next major trend.

15. What currency will AI agents use?

Kevin: Let's talk about AI. If there are billions of AI agents in the future world that can automatically buy, sell, negotiate, and trade, what currency will these agents use?

CZ: It will definitely be cryptocurrency.

Kevin: Specifically, which one?

CZ: I think they will likely start with stablecoins.

Once they can accept stablecoins, it will be easy to incorporate Bitcoin later. They can also include BNB, Ethereum, Solana, and other blockchain assets.

In addition, some large AI companies may also issue their own tokens. I have already discussed with several top AI companies how to issue tokens.

Building data centers requires a lot of funding. One gigawatt of computing power costs about $30 billion to $50 billion. Many AI companies are highly valued but do not have enough funds to build the required computing power. Some companies hope to build hundreds of gigawatts of computing power in the coming years, which could require trillions of dollars.

Therefore, they will consider issuing data center tokens. In the future, when users utilize the data center, token holders may receive corresponding rewards.

If they issue tokens, they will want to maximize its utility, such as using it to pay for subscription services and further binding it with different language models and services. So, it is not unimaginable for AI companies to issue their own utility tokens.

We have already seen some projects closely related to OpenAI issuing tokens, such as Worldcoin. Although it does not yet have a very strong utility model today, these teams are indeed very close to AI companies.

I believe that when AI helps us handle payments, they will use cryptocurrencies. But at the current stage, AI payments may come after AI trading.

For example, having AI agents help you book hotels and pay bills is not the top priority for major AI companies to solve right now. They are more focused on making the agents smarter and helping users find the best options. Users can still pay with their credit cards at the end.

But trading is different. Trading requires quickly gathering information, reacting quickly, analyzing charts, and executing strategies. AI can significantly improve efficiency, possibly by tenfold. In this scenario, you wouldn't want AI to analyze and then have you manually click to trade; you would want AI to place the order directly.

So, AI is likely to trade for people first and then handle payments.

16. Is Bitcoin still a savings technology?

Kevin: Does this mean that whether in the human world or the AI world, Bitcoin primarily remains a savings technology? Stablecoins or other crypto assets are used for commercial activities and transactions between machines?

CZ: To a large extent, yes, this is the next step.

But as more people use stablecoins for payments, many payments will also shift towards native cryptocurrencies like Bitcoin payments.

Many people are still not accustomed to Bitcoin's price volatility. However, once the payment rails are fully open and cryptocurrencies can be widely accepted, those who hold Bitcoin will no longer first convert it to stablecoins. They will hold Bitcoin long-term, not care about short-term fluctuations, and not want to take the extra step of converting it to fiat-linked assets for consumption.

I personally hold BNB and some Bitcoin. I mainly spend BNB. I wouldn't first sell BNB for dollars to consume because that is very inconvenient. When using the Binance Card, the system deducts BNB based on the spending amount. I don't care much about the exchange rate at that moment because prices fluctuate and may even go up. I just spend according to the price of that day and minute.

So, initially, people will use stablecoins for payments; but as the payment network becomes more widespread, people will directly spend the cryptocurrencies they originally hold.

17. What does CZ hope to contribute to the "Bitcoin Century"?

Kevin: This conversation is called the "Bitcoin Century." What do you hope your contribution to this Bitcoin Century will be?

CZ: I actually don't know.

My mindset has always been to do my best. If my abilities are limited, I will contribute a little; if my abilities are stronger, I will contribute a bit more.

So far, I believe I have made some contributions to the crypto industry within my capabilities. As long as I can continue to do so in the future, I will keep doing my best to contribute to this industry.