Will AI Crypto become the next hot topic? Binance CZ: Land registration and identity verification become breakthroughs in blockchain

Binance founder CZ at the Token2049 conference held in Dubai on 5/3, discussed his long-term belief in Bitcoin, blockchain potential, and the future of AI Crypto, pointing out that the startup ecosystem currently lacks "leaders with execution power and a sense of mission". He ultimately emphasized that he has always been optimistic about blockchain development, regardless of market conditions.

Market is Difficult to Predict, But We Are Still in the Early Stage Long-Term

CZ first stated that whether during the 2019 Crypto Winter or the volatile periods of 2022 and 2023, he has always remained bullish.

He believes that while the market generally follows a "four-year cycle", no one can accurately determine whether this cycle will be long or short. However, looking from a 10-year perspective, the overall market is still in its early stages, not just for Bitcoin, but for Ethereum as well.

"Many people talk about various tokens, but honestly, very few will outperform Bitcoin long-term, and they all start from a very small market cap," he emphasized.

ETF Funds Boost Bitcoin, Institutional Migration Takes Time

He pointed out that the biggest momentum for this bull market comes from the "ETF fund wave", and these funds are basically all flowing into Bitcoin, thus Ethereum and other Altcoins have relatively smaller gains.

"Once money enters the crypto market, it will eventually spread out," CZ emphasized.

Institutions' transition from Bitcoin (BTC) to Ethereum and other assets is usually slow, but the direction will be consistent.

Local Regulations and Infrastructure Limit Global Efficiency

Regarding regulation, CZ candidly acknowledged that many governments are still fixated on "localized" solutions, including:

• Custody
• Order books
• Operating teams

He warned that this is very inefficient, especially since cold wallet design requires globally distributed, trustworthy personnel signatures, which cannot be replicated in every country.

"We can't even set up a globally secure custody solution, let alone 200 of them," CZ said with a wry smile.

Countries Gradually Entering, US and Bhutan Hold Crypto Reserves

Interestingly, he revealed that Bhutan, some developing countries, and the US have actually included Bitcoin in their national asset reserves.

Bhutan even started mining with clean energy years ago and has now increased holdings of Ethereum (ETH) and BNB.

"Once major countries start hoarding cryptocurrencies, smaller countries are forced to follow, because the later you enter, the higher the cost." CZ emphasized.

(Driven by central bank financing, Bhutan, a Bitcoin mining powerhouse, has become the fourth-largest BTC holder globally)

Calling on Small Countries to Use Third-Party Custody First, Then Build Self-Owned Cold Wallets

CZ revealed that he is helping multiple countries design "crypto asset strategic reserves" and providing practical advice.

"Countries with fewer assets can first use multi-signature third-party custody, and build their own cold wallets when the reserve amount reaches a certain scale to avoid excessive risk." CZ emphasized.

(CZ from Binance becomes a blockchain advisor to Kyrgyzstan! From gold stablecoins to agricultural chains, striving to become a Web3 innovation center in Central Asia)

Claiming Startup Fundraising is Too Easy, Mission Sense Becoming Increasingly Scarce

He lamented that fundraising is now too simple, from ICO to Non-Fungible Token, to meme coins, where projects can be listed as long as they have images and stories, which makes some project leaders "slack off once they get money".

"What we lack is not money, but founders with mission, execution ability, and persistence." CZ emphasized.

True Blockchain Applications Haven't Started Yet, Land Registry and Identity Verification are Breakthrough Points

Besides financial uses, he believes true non-financial blockchain applications should start with:

• Land ownership registration
• Digital identity verification

For example, in Africa or Japan, land registration still relies on paper documents, which are difficult to recover if lost - a problem blockchain can solve.

AI and Blockchain Combination Just Began, Data Sovereignty is Key

Discussing AI, he believes the next stage's focus is "AI using crypto", because AI cannot swipe cards or verify via SMS, and its settlement method can only be cryptocurrency.

"AI's currency will be cryptocurrency, and AI needs massive data for training. These data, if extracted through blockchain, can preserve privacy and sovereignty." He stated.

Markets May Fail, But Trends Won't, Blockchain and AI are the Future

Finally, CZ admitted that he has made many incorrect predictions in the past, such as underestimating stablecoins' influence and not anticipating meme coins' popularity. But he emphasized:

"I never predict short-term market trends, but the long-term direction is clear. AI and blockchain will definitely become key technologies in the future."