Former Binance CEO Changpeng ‘CZ’ Zhao advocates for crypto wallets to take center stage in everyday blockchain interactions, leaving exchanges to cater more to professionals and liquidity providers.
In a recent discussion on X (formerly Twitter) with Trust Wallet CEO Eowyn Chen, CZ emphasized the distinct use cases of wallets and exchanges.
Although no longer at the helm of Binance, CZ remains actively engaged in seeking investment opportunities with YZI Labs (formerly Binance Labs) and contributing to the Giggle Academy. Amid his busy schedule, he also shared about his popular dog Broccoli, gaining attention in the meme coin realm.
Speaking on the topic of crypto wallets, CZ highlighted the role of exchanges in catering to the needs of professional traders, emphasizing that wallets should be the go-to platforms for daily blockchain interactions.
"I don’t think there should be any block in the future. The exchanges should only be for professional traders... Most people should not need to interact with Exchange," CZ remarked, emphasizing the incorrect practice of many using exchanges as wallets.
This view marks a notable evolution in the crypto industry's landscape, with wallets now assuming broader functionalities beyond mere storage, encompassing asset management, digital identity, and payment services.
Addressing the transformation, Eowyn Chen noted the substantial growth in Trust Wallet's user base, with a shift towards everyday users rather than speculative traders. Trust Wallet's decentralization approach has resonated well with users, amassing nearly 200 million downloads.
Wallets are also envisioned as gateways to digital identification and government services, as governments explore blockchain solutions for secure digital identities. CZ underscored the pivotal role wallets play in facilitating such initiatives, likening them to browsers for the internet.
As conversations around user data and market practices heat up, separating wallet and exchange functions may bring benefits by capturing distinct user profiles and expanding the audience for everyday financial services.
The narrative extends further into the realms of digital identity and education, with the potential integration of certificates and identity systems into wallets. This envisaged integration could streamline access to educational content, governmental services, and financial tools through a unified interface, ushering in enhanced crypto usage and driving blockchain adoption.
By envisioning wallets as multifaceted tools for diverse needs, the industry may be poised for transformative growth and greater accessibility to blockchain technology.