Key TakeawaysCZ says CEX and DEX currently serve different user groupsHe notes that wallet security and usability remain key barriers for mass DEX adoptionCZ estimates global crypto adoption at under 1% when measured by net worth exposureChangpeng Zhao has shared his view on the long-term relationship between centralized exchanges (CEXs) and decentralized exchanges (DEXs), saying the two models are likely to coexist for a long time rather than directly replace one another.Speaking during a recent AMA, CZ said that CEXs and DEXs currently serve very different types of users, largely due to differences in usability, security requirements, and technical complexity.Different Products for Different UsersAccording to CZ, DEXs require users to interact directly from self-custody wallets, which introduces significant security responsibilities.He said that properly securing a wallet today is still a specialized skill, often requiring users to maintain highly restrictive device practices to avoid malware or phishing risks.“Most people cannot secure their own wallet,” CZ said, adding that active DEX trading typically requires a dedicated, highly secure computer environment.By contrast, CEXs offer familiar Web2-style experiences, including email and password logins, customer support, and account recovery processes, making them more accessible to the average user.Crypto Adoption Still in Early StagesCZ also provided context on overall crypto adoption, saying it remains low by global standards.He estimated that while roughly 8% to 10% of people worldwide may have some exposure to crypto, only a small fraction of their net worth is typically allocated to digital assets.“That basically means there’s less than 1% adoption in the world,” CZ said, when measured by total wealth exposure.As a result, he said most non-technical users entering crypto today are more likely to start with centralized platforms before gradually exploring self-custody options.A Gradual Shift as Tools ImproveCZ said that more advanced users may eventually migrate from CEXs to DEXs as they gain experience, but emphasized that this transition depends heavily on improvements in tooling and user experience.He noted that current decentralized products are often fragmented, requiring users to switch between different platforms for swaps, lending, savings, and payments.In the long term, he said integrated self-custody wallets — such as Trust Wallet — could simplify these interactions and make decentralized finance more accessible to non-technical users.No Immediate Competition Between ModelsDespite frequent comparisons between CEXs and DEXs, CZ said he does not view them as being in direct competition at present.He pointed out that the market is large enough to support many players on both sides, with thousands of centralized and decentralized platforms already operating globally.“I don’t think there’s any real competition right now,” he said, adding that future adoption will depend on how technology, security, and usability continue to evolve.