From Davos, connecting CZ's views on the future of crypto and finance

Recently, CZ appeared at the 2026 Davos Economic Forum – a stage that gathers global influencers like Trump, Elon Musk. His statements are not just isolated opinions, but when connected, they form a comprehensive picture of the future of finance, clearly reflecting the pragmatic and insightful mindset of a leader who has experienced multiple market cycles.

Payments are not a replacement, but a bridge between two worlds

The most notable point in CZ’s sharing is his perspective on the payments sector. Instead of following the popular narrative that crypto will “break down” the traditional financial system (TradFi), CZ has a much more realistic view. He admits that the payments industry is facing significant challenges, but the solution does not lie in a “war” between the two sides. Instead, crypto and the traditional system need to find ways to connect closely with each other.

According to CZ, blockchain technology cannot naturally replace the entire existing payment infrastructure. But it will serve as an additional layer of infrastructure, enabling transactions to be faster, cheaper, and more flexible. This is a perspective that sharply contrasts with the calls for a “revolution” often heard from the crypto community. CZ’s message reflects maturity in approach – not about who will “win,” but about how the two systems can connect to create maximum value.

Why Bitcoin and memecoin cannot be the future of payments?

CZ is also quite straightforward in expressing his views on Bitcoin payments. He does not believe that Bitcoin will become a daily payment tool. The reason is understandable – today, Bitcoin functions more as a store of value than as a flexible medium of exchange. With price volatility and slow confirmation times, it is not suitable for practical payments.

Regarding memecoin, CZ warns about the extremely high risks. Most current memecoins are still market sentiment-driven and temporarily liquid, rather than tools with real economic purpose. The system’s scale cannot be built on such unsustainable foundations. CZ’s observation reflects a deep understanding of the current crypto market – which factors are likely to endure long-term, and which are just temporary trends.

Traditional banks will decline, but not because crypto “topples” them

When predicting the future of traditional banking, CZ believes that over the next 10 years, the number of physical bank branches will decrease significantly. However, this is not because crypto directly destroys the banking system. Instead, the current banking model shows inherent limitations – high operating costs, slow processing speeds, and complete incompatibility with a 24/7 digital economy.

Crypto is merely a catalyst, accelerating this transition. Structural pressures from technology, changing user behaviors, and the development of fintech platforms are creating a new landscape. Banks will need to adapt or be replaced by more flexible new models.

Regulatory passport: connecting countries to expand financial freedom

One of the most innovative ideas from CZ’s speech is about the crypto regulatory framework. CZ admits that establishing a unified global regulatory system is nearly impossible due to significant differences between countries. However, he proposes an alternative solution: “regulatory passport” – meaning if a crypto company is licensed in a reputable country, that license will be recognized in other countries without needing to reapply.

If implemented, this would be a major breakthrough for the industry. It would significantly reduce compliance costs, shorten product deployment times, and allow crypto companies to scale globally instead of being fragmented by national borders. This idea connects different legal systems into a flexible framework – an approach that has proven effective in other fields like finance or aviation.

Systemic risk lies in the model, not the technology

CZ also offers a profound insight into systemic risk. He points out that faster, cheaper technology does not necessarily make the system more risky. The core issue lies in the operational model of banks – specifically the fractional reserve principle (where banks only hold a fraction of deposits and lend out the rest).

Under this model, liquidity is always an illusion until trust is lost. That’s when crises happen. Crypto, at least by design, is much more transparent in this regard – each wallet is verified on the blockchain, with no hidden “holes.” This is a noteworthy analysis, as it indicates that the problem does not lie in technology but in organizational structure and legal framework.

Lessons from Davos: connecting weaknesses is where growth happens

CZ’s presentation at Davos reflects a significant shift in mindset. CZ no longer talks about crypto with a “revolutionary” tone, but from the perspective of someone who has gone through multiple market cycles – pragmatic, sharp, and results-oriented. His main message can be summarized as follows: crypto will not replace everything, but it will infiltrate the weakest points of the current system – slow payments, dispersed regulations, outdated banking models, and lack of transparency.

These weaknesses are precisely where true growth will occur over the next 10 years. Not through sudden “revolutions,” but through gradual integration of new technology with old systems, creating stronger, more efficient, and more transparent infrastructure. This is the domain CZ is leading, and Davos 2026 shows that this mindset has begun to permeate global political and economic discussions.