Zhao Changpeng: The Impact of Bitcoin on Government Power Depends on Government Choices

Zhao Changpeng stated at the "Bitcoin Asia 2026" conference in Hong Kong that Bitcoin itself does not weaken or strengthen government power; the key lies in the government's response choices. He pointed out that historically, weak governments have sometimes led to better economic performance, such as the relatively weak U.S. government, which has become one of the strongest economies in the world. After the current SEC chairman relinquished some regulatory power, the industry experienced growth, while the strong regulation under former chairman Gary Gensler stifled industry development.

Zhao mentioned that Bitcoin, as a decentralized technology, gives individuals more sovereignty, but its privacy design has flaws, making on-chain transactions easily traceable. Governments can choose to exploit these characteristics, for example, by declaring Bitcoin ownership illegal or imposing a 36% tax on every transaction, which would stifle industry growth. He emphasized that while governments seem to have strong power, a zero tax rate is still zero, and taxing a trillion-dollar market at 6% would yield substantial revenue.

He also noted that most governments have begun to pay attention to Bitcoin, but many countries still lack a regulatory framework for cryptocurrencies, and officials who understand Bitcoin remain in the minority. In some countries, the older generation's dominance leads to a conservative attitude. Nevertheless, he feels that a shift is occurring, even though some still hold the biased view that Bitcoin is primarily used by drug lords.