CZ's FAQ 9 - CEX vs DeFi: What Can We Expect in the Future?

I believe that ten or twenty years from now, decentralized exchanges will be bigger than centralized exchanges. 

Today, the majority of people are not even in crypto. Crypto adoption only roughly covers 0.5-3% of the world population, depending on the aspect you measure. The people in crypto are the early adopters. They are technical. They know how to back up their own private key, encrypt them, and shard it across multiple places. They’ve planned and implemented a way to give it to their kids when they are not around. 

These are challenging tasks for an average person. So, for the other 97% of the world, it's easier for them to use an email and password when they come to crypto. If they lose that, they can call customer support. This 97% of people will use a centralized exchange (like Binance) first. The CEX model will continue to grow.

As the technologies become easier to use, people will naturally migrate towards DeFi solutions where they have more control and freedom and away from CEXs.

Overall, I estimate CEX usage will reach 50% adoption before DeFi starts to catch up with it. Could be wrong. We will see.

At Binance, we are not afraid of disrupting ourselves. We invest heavily into the future. We invest heavily in DeFi protocols.