- CZ believes crypto’s real potential lies beyond trading in sovereign digital reserves
- Europe lags behind as other regions explore crypto-backed national reserves
- Bitcoin ETFs and stablecoins are driving crypto’s evolution into financial infrastructure
Changpeng Zhao, better known as CZ, believes that crypto’s most important phase hasn’t started yet. Speaking at Token2049 in Dubai, the Binance co-founder said the industry has so far revolved mainly around trading.
However, that is exactly why he thinks the biggest opportunities still lie ahead. His comments came during a fireside chat where he also addressed geopolitical readiness, market drivers, and what’s next for crypto adoption.
Interestingly, CZ revealed that several countries have sought advice from him on building a crypto reserve similar to the United States. However, he made it clear that Europe isn’t part of those conversations.
In fact, he said Europe seems absent from the strategic map when it comes to sovereign crypto planning. His remarks come just a day after the UK unveiled draft crypto regulations though they didn’t include any steps toward forming a digital asset reserve.
Crypto Reserves Gaining Global Interest -But Not in Europe
According to CZ, governments are increasingly open to backing their reserves with digital assets like Bitcoin. The concept of crypto reserves isn’t new, but interest in it is accelerating. This signals a shift in how countries may secure their economic future, especially amid rising inflation and uncertain monetary policies.
However, CZ pointed out that Europe still hasn’t warmed up to this idea. While nations in Asia, the Middle East, and Latin America are reportedly exploring the model, Europe remains on the sidelines.
This could potentially cost the continent its competitive edge in future digital economies. Meanwhile, the US has taken major steps forward with its Bitcoin ETFs, contributing significantly to the current bull cycle.
“We are advising many countries (except in Europe) on how to set up a crypto reserve like in the US. Europe isn’t part of the discussion, it’s missing on the map ” – CZ on strategic reserve progress around world (of which he consults on) pic.twitter.com/IQAlxKj3md
— Eric Balchunas (@EricBalchunas) April 30, 2025
Bitcoin ETFs, Stablecoins, and the Crypto-AI Future
CZ credited the surge in institutional interest to the rollout of Bitcoin ETFs. He said this cycle is mostly driven by Bitcoin, even though Ethereum ETFs are also picking up steam. Bitcoin remains the dominant force but CZ believes the success will eventually spill into the broader ecosystem.
He also shared insights on the intersection of artificial intelligence and crypto. As AI becomes more embedded in financial systems, it may begin transacting in crypto rather than using traditional rails.
Stablecoins, which were once seen as temporary, are now proving to be critical infrastructure in digital finance. CZ acknowledged this shift and sees it as a sign of the industry’s maturing foundation.
