Zhao Changpeng, speaking at Davos, stated that the fractional-reserve requirement system is the root cause of the banking liquidity crisis, and that demand from real-economy banks will sharply decline

PANews reported on January 22nd that at the World Economic Forum Annual Meeting 2026 in Davos, Changpeng Zhao stated that technology itself does not bring risks, but rather accelerates the exposure of existing problems. He pointed out that the root cause of the bank (bank run) liquidity crisis lies in the "fractional reserve system." He cited Binance as an example, stating that in December 2023, the platform handled as much as $7 billion in withdrawals in a single day without significant pressure. Zhao predicted that with the maturation of blockchain and KYC technologies, physical bank branches will be significantly reduced in the next decade. At the same time, he expressed reservations about Bitcoin direct payments and Meme coins, believing that Meme coins are highly speculative and most will be unsustainable, with only a few, such as Dogecoin, potentially existing long-term due to cultural value.