Cryptocurrencies seem to be in a freefall at the moment. But some stakeholders still have a strong conviction that crypto and decentralized finance (DeFi) will bounce back. The Chief Executive Officer of Binance, Changpeng Zhao (CZ) is one of those who believe the future of DeFi and cryptocurrencies is very bright.
He also thinks that decentralized exchange platform (DExes) and DeFi will surpass their centralized counterparts in the long term.
DeFi To Outshine CeFi In The Future
Recently, he granted an interview on the Bankless YouTube channel where he predicted that the decentralized blockchain projects will outshine centralized finance (CeFi) in 10 years.
“I think in five or 10 years, decentralized exchanges will be bigger than centralized exchanges,” he noted.
Zhao also pointed out that he has a strong conviction that centralized protocols will become less valuable and used compared to decentralized ones. But he still thinks that both types of platforms will still be used since many people would still choose the conventional way of accessing their accounts.
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However, he admitted that it will take a very long time before centralized exchanges can go extinct because they will be playing their roles in decades to come.
Zhao stated that the reason is that several people are still very comfortable with the way they use their emails and input their passwords. Many people who prefer the more conventional way would prefer email and passwords rather than doing encrypted backups, which may seem more complicated to them.
CeFi Will Still Be Very Relevant
At the moment, the decentralized systems seem new and more complicated. But just like every new thing, people will gradually see the benefits of DeFi and move from the conventional way.
The DeFi technology has enough room to improve and become more user-friendly where decentralized processes will be much more usable. It will give people more control over their accounts and finances, Zhao stated.
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