Zhao Changpeng: Bitcoin itself will not weaken or strengthen government power; it depends on how the government responds

Zhao Changpeng stated at the "Bitcoin Asia 2026" conference in Hong Kong that Bitcoin itself does not weaken or strengthen government power; what truly matters is the choices made by the government. Historically, weak governments have sometimes led to better economic performance. For example, the U.S. government is relatively weak, yet it has created one of the strongest economies in the world; after the current SEC chairman relinquished some regulatory power, the industry actually experienced growth, while former chairman Gary Gensler's attempts to control everything stifled industry growth.

He mentioned that Bitcoin, as a decentralized technology, allows individuals to have more sovereignty, but its privacy design has flaws, and on-chain transactions can be easily tracked; governments can choose whether to utilize these characteristics. For instance, declaring Bitcoin ownership illegal or imposing a 36% tax on every transaction would stifle industry development. The government may seem to have significant power, but a zero tax rate still results in zero revenue, while taxing a trillion-dollar market at 6% would yield substantial income.

He also noted that most governments have relatively recognized Bitcoin, but many countries still lack a regulatory framework for cryptocurrencies. Among government officials, those who understand Bitcoin remain a minority, and in some countries, the older generation's dominance leads to a more conservative attitude. However, he does feel that a shift is occurring, despite some still holding the biased view that Bitcoin is primarily used by drug lords.