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Crypto wallets are positioned to become the main tool for daily crypto asset management.
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Former Binance CEO CZ stresses that exchanges should serve professional traders only.
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Trust Wallet shows growth by catering to everyday blockchain and digital identity needs.
Former Binance CEO Changpeng ‘CZ’ Zhao advocates for the shift towards crypto wallets as essential tools for daily transactions.
CZ Thinks Crypto Wallets and Exchanges Have Very Distinct Use Cases
Although no longer a boss, CZ lives a pretty busy life every day, as he revealed in this latest discussion. The former Binance CEO is now committed to looking for new investment opportunities with YZI Labs (previously Binance Labs). He’s also actively contributing to the Giggle Academy.
CZ also talked about his dog Broccoli, which recently became quite the phenomenon in the meme coin space. When discussing crypto wallets, he expressed how exchanges serve more professional trading needs, and wallets can become the go-to platform for daily blockchain usage.
”I don’t think there should be any block in the future. The exchanges should only be for professional traders. You know, very large traders with liquidity. The exchange is a liquidity pool. Most people should not need to interact with Exchange,” the former Binance CEO expressed.
CZ stressed that most people have been using crypto exchanges as a wallet, which is wrong. Platforms like Binance, Coinbase, and other exchanges should be used only for trading. On the other hand, apps like Trust Wallet serve the purpose of storing cryptoassets. This statement reflects a shift in the crypto industry. Wallets, which have served as simple storage tools, now play a key role in asset management, digital identity, and payment functions.
Wallets now support a wide range of functions, such as remittance, wealth management, and access to DeFi services.
Eowyn Chen pointed out that Trust Wallet has grown its user base significantly. The platform now attracts everyday users rather than those interested in speculative trading.
“We have almost 200 million downloads, and this is about 77% of the finance registration users. So for us, we feel like as a decentralization wallet. And with all the hoops that you have to jump over, that’s quite some honor from the user base,” said Trust Wallet CEO Eowyn Chen.
Gateway for Digital Identities
CZ also mentioned that wallets could become a gateway to digital identification and government services. He noted that many governments are exploring blockchain solutions to provide citizens with secure digital identities.
Wallets could support such initiatives and provide a safe place to store assets and digital credentials. This point suggests that wallets will extend beyond finance into areas like digital education and public services.
“When governments look at blockchain, the first thing they’re going to need is a digital and decentralized ID solution. For that, you need a wallet. You should be able to do everything from the wallet. The wallet is kind of like the browser to the internet, right? So they are a key infrastructure,” said CZ.
The discussion came as wallet providers and exchanges face increased scrutiny over user data and market practices. Eowyn Chen said that separating wallet functions from exchange functions can benefit the ecosystem by capturing different user profiles.
As a result, wallet platforms have the opportunity to serve a wider audience with everyday financial needs.
The debate also touches on the emerging role of digital identity and educational tools. Chen described a concept where digital certificates and identity systems integrate with wallets.
This integration would allow users to access educational content, government services, and financial tools from a single interface. Such innovation could improve everyday crypto usage and pave the way for increased adoption of blockchain technology.
Conclusion
In summary, the evolving roles of crypto wallets as primary tools for digital asset management highlight a significant shift in the industry. With strong endorsements from figures like CZ, the potential for wallets to streamline various aspects of daily life—beyond traditional finance—becomes increasingly clear. This trend not only enhances user experience but also bolsters the credibility of crypto within broader societal frameworks.
