Binance CEO CZ discusses the impact of AI on cryptocurrency in new Twitter Spaces AMA
During a Twitter Spaces Ask Me Anything (AMA) session held on March 9, Binance CEO Changpeng Zhao discussed various topics, including the impact of artificial intelligence on cryptocurrency markets, and addressed the ongoing concerns around the exchange from mass-media FUD to new directions in stablecoins.
The Binance CEO discussed the use of AI in their products, such as integrating Chat GPT into Binance Academy and using AI for customer support and compliance tools. He also mentioned that Binance works with multiple stablecoin partners, including a Euro stablecoin provider, but does not sign exclusivity deals.
Zhao believes that non-fiat-backed stablecoins will eventually take over, but people need to understand the risks involved. Regarding BNB development, Zhao stated that it is better for the community to develop projects independently, and the BNB Ecosystem Fund provides small grants for such projects.
How do you see AI applications in 2023 developing with respect to cryptocurrencies?
So Binance has been using AI in our products in a few areas. So our team recently integrated chat GPT into Binance Academy. So now Binance Academy, which is a free educational platform on Binance.com, it talks about all the critical stuff. You can interact with AI, and if you ask for something, the AI will try to give you a response. So that’s the most recent one. Before that, we’ve been using AI to field our customer support desk. And more recently, we’ve been applying our AI alongside the compliance tools.
Is Binance working with a Euro stablecoin provider?
We have always been working with multiple stable coin partners, but USD is one that they wanted us to lend our branding support. Binance is never exclusive, only one partner, we never sign exclusivity deals. So I think it’s beneficial to see more and more stable coins being promoted. I think that fiat-backed stablecoins will continue to exist for a long time to come. Algorithmic stablecoins have different risk characteristics. People need to understand those risks. Longer term, I do see non-fiat-backed stablecoins taking over. I think Do Kwon had the right idea. He just executed poorly, and he was also not transparent enough with the risks involved in an algorithmic stablecoin.
On inflation curve stablecoins
There are certain advanced ways to trade based on inflation bond curves so that you get exactly the inflation rate in appreciation for the underlying asset. And if you attach a stablecoin onto that, then that stablecoin is pegged to the inflation rate […] there are many interesting innovations and discussions that are happening on top of that.
Can Binance do more to aid in BNB educational development?
I’m not that deeply involved in the BNB development. So in terms of the multiple BNB chains, there’s different teams working on that, and then the different projects in the ecosystem […] I think as a decentralized ecosystem, it’s better for the community to just know whatever they develop, they develop […] There’s the BNB Ecosystem Fund, which is managed by sort of BNB ecosystem, the BNB Foundation or team. So they decide relatively independently which projects to give grants. The grants are usually quite small. Around $50K, but sometimes as much as $250K.”
CZ doubles down on commitment to Voyager deal
We’re still committed to Voyager and very committed to going to that deal and helping the users there.
However, CZ also revealed that Binance had scaled back on some commitments, citing the US as having a more negative industry perspective in terms of regulatory clarity and adoption stance.
“I think the US this year doesn’t look good.”
On the other hand, CZ mentioned that places like France, Dubai, Bahrain, and Abu Dhabi were extremely favorable towards crypto. Additionally, Hong Kong and Japan had become more positive towards crypto as well.
The recent WSJ article “FUD”
CZ alluded to the explosive recent Wall Street Journal article that contained leaked Telegram messages from the Binance CEO, new revelations claiming that Binance and Binance U.S. are more intertwined than previously thought.
In response, CZ tweeted last week “4” — referencing an earlier Tweet reminding his 8.2 million followers to “ignore FUD, fake news, attacks, etc.”
The 4 quickly became a meme on crypto Twitter, with users uploading photos of themselves holding up four fingers.
TheFUD “just gives us more exposure and more publicity. Most users are very smart today, and we actually only want the smart users on our platform,” CZ said, “the people who believe in FUD, we actually probably don’t want those users on our platform.”