Davos 2026: The Small Meme and Crypto Payment Paradox How Does CZ See It

Binance founder Changpeng Zhao (CZ) delivered his speech at the 2026 World Economic Forum, where he analyzed in depth the growth of the crypto industry. The inability of crypto payments to become mainstream after a decade of development, the speculative volatility of small meme tokens, and the fragmented global regulation — these are the structural issues highlighted by CZ. His discussion was not just a chapter between expectation and reality, but rather clarified fundamental design problems of the financial system.

Ten Years of Waiting, Reality: Crypto Payments Must Reach Mainstream

The crypto payment system has a decade-long initiative supported by both Bitcoin and other tokens, but the results are not as expected. CZ stated that crypto payments still remain marginal, and most people view Bitcoin more as an activist stance rather than a personal transfer tool. This situation is comparable to other innovative technologies like phone, internet, or mobile payments. While each major technological leap can create significant deep effects, crypto payments are still expected to reach those success moments.

Small Meme Can Live Forever, but Many Fall Victim to Slander

When the topic of meme tokens arises, CZ classified them among the highest risk segments in the crypto market. He said that most meme coins have no practical benefit and are entirely based on market sentiment and speculation. On the other hand, although a small number of meme tokens like Dogecoin have survived for decades, CZ emphasized that small meme tokens cannot live long in the long run. Only meme tokens with sharp social and cultural value will be sustainable in the future.

Drawing an analogy to the NFT market, CZ added that they could quickly fade away without strong support or speculative frenzy. While meme tokens can serve as entertainment and community tools for men during their time, investing in them is regretful.

Binance Test: How Liquidity Supports Bank Crises

Concerns about bank failures supported by Artificial Intelligence emerged, but CZ pointed out an interesting difference. The technology itself is risky, but rather, technology exposes existing structural problems faster. If a bank has liquidity mismatches, rapid withdrawals reveal this more quickly. However, slowing down withdrawals is just a temporary patch without solving the core problem.

Binance itself is a good example of this event. Within a week, the exchange experienced a net outflow of $14 billion. Daily maximum withdrawals exceeded $7 billion, yet no liquidity crisis occurred. CZ compared this to most traditional banks, emphasizing that many of them cannot withstand such pressure. Because their structural weakness, like a fractional reserve system, poses a different risk — a more fundamental problem than the speed of withdrawals.

Regulation Passport: The Path to Unity Instead of Different Rules

CZ stated that global crypto regulation remains inconsistent. Each country follows a different, often contradictory framework, or it is just a fantasy. While banking regulations are largely standardized, crypto rules vary widely. Binance currently holds 22-23 international licenses, but many countries still lack comprehensive crypto laws. The main legislative framework, like the US market structure law, is still under development.

CZ explained that due to differences in tax systems, capital controls, and political priorities, a unified global crypto regulator is unlikely in the short term. Currently, many governments are advising on crypto policy formalization. Instead, he emphasized regulation passporting as a more practical first step. Under this model, a license issued by one jurisdiction can be recognized by another, enabling faster cross-border compliance without creating new global institutions.

CZ’s thoughts at Davos 2026 provide a cautious yet structural perspective on crypto evolution. His comments highlighted the inability of the industry to correct financial design flaws through risk awareness, regulatory realities, and technology-supported solutions.