Binance and Coinbase are “on very good terms”, says CZ

Binance’s Changepeng ‘CZ’ Zhao said in a recent interview that the exchange is “on very good terms” with Coinbase, another prominent cryptocurrency exchange in the space. The CEO described a sort of symbiotic relationship between the two giants in the cryptocurrency exchange space. He also spoke about the advancement in the blockchain space, along with the future features such as decentralized applications.

The CEO started off his interview with Fortune by speaking about their recent acquisition of the wallet service and decentralize application browser software known as TrustWallet. CZ believes that the reality of dApps is that they are unwieldy to use through their user interfaces.

He said:

“It’s still the very early stage in dApps. Most are just proof of concept or simple games.”

CZ made a prediction for the future, saying blockchain-based messaging, games, social networks and rating systems will emerge due to higher privacy because of decentralization. Moreover, he believes e-commerce will also move into decentralization.

This seems to be the reason for Binance to move into building a financial system which is decentralized in its home country of Malta. This also includes the vision of building a community bank with a decentralized global operation.

CZ revealed that he preferred working in a country such as Malta, where he can interface directly with one of the heads-of-state. The main aim is to “lay the groundwork” and to “promote the ideals of a decentralized financial system”. This is where the symbiotic relationship between Coinbase and Binance comes in.

Coinbase appreciates the work done by Binance in Malta, said CZ. The favor is paid back by Binance, who is “grateful for Coinbase’s work” in the regulatory side of things in the United States.

CZ also went on to say that he has no intentions of fighting for market share, especially in developed markets.

He said:

“In developed markets, there’s more money to be made but more regulation and it’s saturated with competition. We don’t want to compete with Coinbase and [Winkelvoss-owned] Gemini. The strategy there requires lots of lawyers and lobbying.”

On the subject of blockchains that can host and propagate dApps, CZ spoke about market leader Ethereum [ETH] and competitors such as Tezos [XTZ], EOS [EOS] and Dfinity. He stated that the competitors were “too slow” for ensured long-term success, going on to say that any blockchain build for general smart contracts will not be fast enough.

The promise, instead, lies in more specialized tools such as Komodo [KMD] and Tendermint. He said that more specific use-case hardware such as Application Specific Integrated Circuits [ASIC] will also move into prominence.