Chinese billionaire Changpeng Zhao, 45, has the logo of Binance, the world’s largest digital asset exchange, tattooed on his right arm. There is no lack of reasons. In less than four years, the company he founded has become the biggest cryptocurrency power on the planet and develops trading systems for more than a hundred digital commercial transactions involving currencies and even the sale of football players.
CZ, the initials of his name and as he likes to be called, has already been an attendant at McDonald’s, and, according to Bloomberg, accumulates a fortune estimated at US$ 64.4 billion (the equivalent of R$ 323.2 billion at this Friday the 18th) — making him the richest Chinese and one of the 20 biggest billionaires in the world.
The growth of his fortune, however, occurs at the same speed as the controversies involving the company. At least 13 countries, including Brazil, question Binance’s way of acting, which would be circumventing local market rules. Under pressure, the company acquired a local brokerage as a way of adjusting to the rules in Brazil.
About the country, the entrepreneur says he sees potential for Brazil to become a center for disseminating cryptocurrencies.
Many countries are concerned about the use of cryptocurrencies for crimes. Binance has been involved in some cases. What has the company done to make digital transactions more secure? There is a misunderstanding that people use crypto for illegal activities. Among all transactions [financeiras] carried out in 2021, only 0.15% were related to fraud [com moedas digitais]according to a report published by the United Nations.
In 2016, Bitfinex suffered a hacking attack and criminals were blocked from the trading system immediately after they started using the stolen money. [no mundo digital, as moedas têm uma espécie de rastreador]. It is very difficult to practice these illegal activities in blockchain transactions [plataforma que sustenta essas transações] without getting caught.
So why did Binance take so long to detect fraud by the entrepreneur known as the “Bitcoin Pharaoh”? If the authorities say that an agent practices any of these activities, we do not negotiate further. In this case we worked directly with the police and they were immediately blocked.
Do you advocate tougher regulation? We can help entrepreneurs increase their revenues globally. We sponsored football teams and PSG, for example, increased its income by US$ 1.2 billion. The team would not have hired the [Lionel] Messi if he hadn’t adopted the “fan tokens” [uma espécie de carteirinha virtual do clube que dá direito a várias atividades como comprar ingressos, participar de votações e adquirir brindes] to sell merchandising. I think regulation should encourage that sort of thing and block bad players.
Was buying a brokerage firm in Brazil, which already has a license to operate, the easiest way to act under Brazilian rules? I don’t know if it will be faster because the acquisition depends on the approval of the Central Bank. But we intend to acquire other companies. We want to be global by being local. Our team in Brazil has 70 people and we can reach 500 people. But if Brazilian regulation bans cryptos, we will have to get out of here.
What explains your interest in Brazil? It is among the ten largest populations in the world. We don’t see it in terms of GDP. We are more interested in places with more mobile users [com acesso a internet]. Such a population can be a hub [centro] of future fintechs on the planet.
Shortly after Russia’s invasion of Ukraine, the two local currencies plummeted and gold, once an asset that people had always sought in times of war, also plummeted. Bitcoin and other cryptocurrencies soared. Are they already safer than gold? The war showed that traditional currencies are not stable because they depend on the decisions of one person or a few. In an emergency situation, you cannot carry gold in your suitcase. It’s heavy. I’d be caught by a metal detector. Bitcoin grew because it is not associated with any country, it is a more neutral form of money technology.
Why Binance Didn’t Stop Trading with Russians even after sanctions? Binance does not make the rules of who should and should not be punished. The list [de sanções] it was made by the USA, by European countries, by the FBI, military. It’s a public list. If I blocked anyone not on the list it would be a steal.
Will cryptocurrencies replace national banknotes? In the future, yes, maybe in a decade or two. Not in the short term. See, Uber didn’t do away with taxis. There is an overlap. The same is true for cryptos. You will not buy a snack, a coffee with cryptocurrencies. But it will raise money globally for a digital currency fund.
The BC of Brazil is studying the launch of the digital real. Would it be the first step in digitizing the economy? Today, of the money that circulates in the world, some are digital but run through the banking system. Most of these transactions are digital, but not on blockchain. El Salvador has released a currency, but it is a bitcoin. Launching a digital currency via BC is progress, but using a bitcoin, like El Salvador, is a big step.
Digital currencies do not assume inflation. They are worth what they are. A currency that can be issued several times by the BC generates inflation. And that doesn’t exist in bitcoin. There is no inflation in bitcoin.
In addition, many regulators have different capital control restrictions. In China, a citizen who moves more than US$ 50 million outside the country is caught in money laundering.
Was it your case then? (laughs) That’s why a lot of Chinese people don’t make a lot of money in China. I left the country when I was 12 years old. Binance’s headquarters are in Dubai [Emirados Árabes Unidos] and Paris [França].
Why did you come to Brasilia? You have an agenda at the Central Bank… I just want to say that we are a big player and present how the industry acts in the world. Many regulators have no experience in this type of currency. [digital] because they come from banks. Communication is still lacking to build an appropriate model that encourages innovation and security.
You posed for a photo with Governor João Doria (PSDB), a possible rival of President Jair Bolsonaro in this year’s elections. Didn’t that create embarrassment? I looked for Doria because we are prospecting new business in São Paulo. I don’t know who competes with whom here. We don’t get involved in politics, we don’t have a political agenda. We are very neutral.
You are considered the richest Chinese in the world. His coat, however, doesn’t look like a designer to me and, in fact, it’s the same one you were wearing yesterday with Doria. You must have at least one Ferrari in his house, right (laughs)? I only have one of those big Toyota vans. Only that. It’s my only car. I bought a property in Dubai and until recently I was renting in Singapore. I don’t spend on luxury items. I bought this coat at the airport and it didn’t cost me more than $30. I resist using the hotel’s laundry room because I would probably pay more than that it cost my coat to clean it.
Money is not a determining factor. Financial freedom is most important. I can say that I got my freedom and I want to use it to build other things. Binance has enough money to do whatever it takes, invest in other companies, generate more wealth. I never take money from Binance. I never sold my shares [ele detém 90% da empresa]. The company allows me to do what I do today.
Invest in cryptocurrencies? all my money [pessoal] is applied in cryptocurrencies, bitcoins (1%) and BNB (99%).
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
