CZ: "The 'fractional reserve system' is the root cause of the banking liquidity crisis, and the demand for physical banks will sharply decline in the next decade."

At the 2026 World Economic Forum in Davos, Zhao Changpeng stated that technology itself does not bring risks, but rather accelerates the exposure of existing problems, pointing out that the root cause of the banking liquidity crisis lies in the "fractional reserve system." He cited Binance as an example, stating that the platform once handled withdrawals of up to $7 billion in a single day, with no overall pressure.

Zhao Changpeng predicted that with the maturity of blockchain and KYC technology, the number of physical bank branches will significantly decrease in the next decade. At the same time, he expressed reservations about direct payments with Bitcoin and Meme coins, believing that Meme coins are highly speculative, and the vast majority will struggle to last, with only a few like Dogecoin potentially enduring due to cultural value.