Paul Krugman, an economist, kicked off a 30-minute conversation with Changpeng “CZ” Zhao, CEO of Binance, by saying, “I’m part of the crypto-skeptic community, I guess you’d say.” The conversation is made for a new MasterClass course.

Krugman, who last week wrote a column for the New York Times calling the hype surrounding cryptocurrency and blockchain technology a “tragedy” that led to “waste on an epic scale,” makes an excellent sparring partner for CZ’s online class. Decrypt had access to the MasterClass’ fifth lesson, which featured professionals.

when it comes to b encryptionHe was skeptical:

Our rap has always been that we can’t see the problem you’re solving, what you’re really doing that we’re really not doing, or how – to the extent there is a problem – it can be solved better than other traditional approaches.

Education is the key to adoption. Masterclass is one of the most engaging educational platforms in the world. I spent over 6 hours shooting for this, mostly because I NG a lot. Also a nice poster they made. wonderful. 🙏 https://t.co/LMJ27cLpXU

– Czechoslovakia 🔶 Binance (cz_binance) December 8, 2022

Zhao responded by noting that the original idea behind Bitcoin and cryptocurrency was Offers a new way to transfer valuemuch like the Internet is a new way to share information.

Bitcoin, specifically, is a slightly better form of money – it fixes some of the problems we have with money today due to limited supply, not easy to use, not a lot of freedom, not very low fees – Zhao

Zhao added, “If you think about global trade, international remittances, remittances, micropayments, etc. To be quite honest, payments were originally thought to be the primary use case for bitcoin, but it didn’t really work out.” However, other use cases, he added.

CZ reported how non-fungible tokens, or NFTs, can be used in cryptocurrency to generate millions of dollars in funding and revenue streams for artists.

A trustworthy entrepreneur can raise the equivalent of $10 to $20 million in cryptocurrency in a matter of days using cryptocurrencies, he claimed.

It’s a global fundraiser. It is easier for entrepreneurs to raise money globally.

Can cryptocurrency still change the world? We asked leading cryptocurrency experts and a Nobel Prize-winning economist.

In this chapter, they will dive deeper than ever before. Plus, in the MasterClass first, a debate: CZ vs. Krugman. https://t.co/RgrL6m93uo@tweet @tweet @tweet @tweet pic.twitter.com/ZBmHyulnOa

MasterClass December 8, 2022

Krugman continued to be brave.

“I’m confused — it’s not clear why blockchain technology should make it easier to raise money in and of itself,” said Krugman. He added that the idea may only seem plausible due to the popularity of cryptocurrencies.

“I think the main big difference is the cross-border of this technology,” Zhao said, noting the difficulty of making cross-border payments with traditional banking. “Blockchain offers that, and I think that is the main reason.”

Technical versus regulatory issues

The Binance CEO emphasized the disparities in economic opportunities around the world by comparing the booming US economy to the economies of China, Vietnam, and African countries.

According to Zhao, SWIFT’s international fees, among other factors, make it very difficult for someone living outside the US to send money there.

Isn’t this basically just a way to bypass regulations that governments, for whatever reason, thought fit to put in place? But [that isn’t] Not a technological issue, but an organizational one,” Krugman argued.

While regulations are part of the problem, Zhao said he believes it is a legacy issue and an issue with the high cost of sending money from one country to another.

The mechanisms for doing so are a big challenge for traditional financial services, he said, adding that there is nothing legally preventing us from investing in a project, for example, for someone in Dubai to invest in a project in South Africa.

Zhao said that as technology makes the world smaller, entrepreneurs can access a global liquidity pool using blockchain technology.

“Why don’t you simply reform the banking rules?” compare the problem to cell phones and how two US carriers can have different policies in the same regions, Krugman asked.

In addition, Krugman questioned why it took so long for people to adopt bitcoin compared to developments like the Internet, saying that the claim that cryptocurrencies are still in their infancy is outdated.

We were all living online by 2008, according to Krugman, who compares it to the internet in 1995. Thirteen years ago, in 2009, bitcoin was invented.

Zahau agreed that Krugman has a valid point, but also noted that the US Advanced Research Projects Agency Network, or ARPANET, developed the Internet in the 1960s, and the US military began using email in the 1980s.

“It appears that the problem is with governments and regulations, not technology,” Krugman replied, indicating that he would become a believer in cryptocurrency if he could get through immigration faster when he travels to Europe. “The problem is that it’s not transferrable, and blockchain won’t help,” he added, noting the ease with which travelers using Global Entry can enter the US.

Many cryptocurrency enthusiasts cite the 2008 financial crisis as justification for the necessity of bitcoin and the sector it spawned. However, some questioned whether it was realistic to assume that the average person would understand the technology and its financial implications.

What’s interesting is that instead of responding to the 2008 financial crisis and other disasters with education, we instead implemented Dodd-Frank, which aims to put more of the financial system under prudential regulation.

Wouldn’t the upshot of it all be that we shouldn’t count on high school students to graduate knowing everything you tell me about? question.

Zhao replied, “It’s not black and white. I think it is very important from a regulatory perspective that regulations continue to evolve with new technologies and new industries in order to protect consumers.”

In addition, Zhao said that people should learn self-defense skills.

There is no perfect solution. While I don’t think education will solve every problem, it will help a little bit – Chow

There will be a gradual expansion of the regulatory network, Krugman said, adding that he believes most cryptocurrencies are used for regulatory evasion and avoidance. However, he believes that cryptocurrencies will survive, “but they are indistinguishable from regular finance.”

Founded in 2004, MasterClass is an American online education subscription platform that provides pre-recorded lessons and lectures by experts in various fields. The “Cryptography and BlockchainThe MasterClass also includes sessions led by Coinbase President and COO Emilie Choi and Chris Dixon, General Partner at Andreessen Horowitz.

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