Binance Founder CZ Advocates Blockchain to Cut High Remittance Fees in Philippines

At the recent ASEAN Tech Summit in Manila, Binance founder Changpeng Zhao (CZ) advocated for the use of blockchain technology to cut the high fees associated with remittances to the Philippines. CZ stated that current remittance costs are "out of hand" and argued that blockchain rails could bring these costs down to near zero. This highlights the potential to improve the situation where a significant portion of funds that could be used for families' living expenses and education are lost to fees. He contrasted the abstract discussions of financial inclusion with the concrete reality of billions of dollars at stake. Regarding the business model for near-free transactions, he frankly admitted that a business earning zero revenue everywhere would eventually collapse, or users might become the product, suggesting a model similar to the free internet where the surrounding ecosystem generates revenue. Furthermore, CZ stressed the importance of building homegrown, peso-backed stablecoins instead of relying on someone else's dollar-pegged stablecoins. He warned that failing to do so means "sovereignty, influence, eventually control of your own economy" is surrendered, as the economy would be run on another country's currency under different rules. When asked about the barriers to adoption, he identified financial literacy as the primary hurdle, noting that many people lack understanding of basic financial terms. He asserted that trust and understanding, rather than technology adoption itself, are the most challenging aspects. Addressing the risks of AI agents executing bad trades or falling for scams, CZ advised that responsibility is shared but cautioned against entrusting AI with more money than one can afford to lose. He also presented data indicating that illicit transactions in crypto are a minuscule fraction compared to traditional finance, underscoring that the technology itself is not the culprit, but rather the people misusing it. Regarding regional digital interoperability, CZ pointed out that while the technology is uniform, the differing tax structures, FX controls, and risk appetites across 11 countries create significant hurdles for regulatory cooperation. This, he noted, leads to slower market entry and ultimately poorer rates and security for consumers. He acknowledged that regulators face the difficult task of balancing consumer protection with political realities and outdated legal frameworks, and that founders need patience. CZ concluded that the technology is ready, but what's lacking is political will for regional interoperability and sustained investment in financial literacy. He warned that inaction would mean remaining stuck in the current situation, continuing to pay billions in avoidable fees, a future he is unwilling to accept. Information Source: Philstar Business