CZ Says Banks Can Use Blockchain Instead of Fearing it

Binance co-founder Changpeng Zhao (@cz_binance) has pushed back on the idea that banks need shielding from blockchain technology, arguing instead that financial institutions should be embracing it.

Faster, Cheaper, and Open by Design

Speaking publicly on the subject, Zhao questioned why some observers treat blockchain as a threat to traditional banking rather than a tool for it. His core argument is straightforward: blockchain can move value faster and at lower cost than legacy financial infrastructure, and its open architecture means banks can plug into it directly, without waiting for proprietary networks to adapt.

That position is backed by a growing body of evidence. Blockchain enables faster and cheaper cross-border transactions by eliminating intermediaries and reducing settlement times from days to minutes. Cross-border payments are faster and less expensive with blockchain than with traditional systems, with remittance costs on-chain running at roughly 2 to 3 percent of the total amount, compared with 5 to 20 percent withheld by other third parties.

Unlike closed financial networks, blockchain transactions are recorded on a public ledger that anyone can audit. Every transaction recorded on the blockchain is transparent and visible to all participants in the network, enabling easier auditing, reducing disputes, and establishing clear accountability. That openness is a feature, Zhao suggests, not a vulnerability.

A View Zhao Has Held Consistently

The remarks fit a broader pattern in how Zhao has spoken about blockchain's role in finance. He has described blockchain as a fundamental infrastructure technology, comparable to the internet and artificial intelligence, rather than a vehicle for short-term speculation. He has also argued that a return to traditional banking systems is unlikely given slow processing times and high costs associated with cross-border transactions.

A Citi survey found that most banks and asset managers expect tokenized securities and stablecoins to handle 10 percent of global post-trade market turnover within five years, suggesting that parts of the institutional world are already moving in the direction Zhao is describing.

Some banks have already acted. HSBC, for instance, slashed a document negotiation cycle from roughly a week to a single day by implementing blockchain in a live trade finance transaction. Westpac collaborated with Ripple to develop a low-cost cross-border payment system based on blockchain, while banks including Deutsche Bank, Barclays, and BNP Paribas have adopted blockchain to reduce remittance costs.

For Zhao, the question is not whether blockchain belongs in finance. It already does. The question is whether more institutions move early or get left behind.

Sources:
Crypto News: Why Changpeng Zhao believes we will stop talking about crypto within five years
Appinventiv: How Blockchain in Banking Is Transforming the Industry
BVNK: Blockchain in Cross-Border Payments