CZ at Davos 2026: What stages are crypto payments and global regulation currently in

During the last World Economic Forum in Davos, Changpeng Zhao, co-founder and former CEO of Binance, presented a critical analysis of the development of the cryptocurrency market. His conclusions touched on three key topics: the actual state of crypto payment adoption, the speculative nature of meme coins, and the fragmented global regulatory framework. These observations revealed that the crypto industry is at different stages of acceptance, each with its own unique challenges.

Experimentation Stage: Why Crypto Payments Still Haven’t Become Mass Market

After ten years of development, Bitcoin and crypto payments remain far from mass adoption. CZ emphasized that despite investments and technological advancements, crypto payment adoption is still in the experimental stage. This state reflects a general pattern in the development of revolutionary technologies: most projects fail, but a few successful cases lead to widespread adoption.

The problem is not with the technology itself but with structural barriers and ecosystem requirements. A payment system must be robust, reliable, and convenient for everyday use — conditions that crypto payments have not yet fully met. At this stage of acceptance, decisive steps toward mass adoption remain unlikely.

Meme Coins: Speculation Instead of Functional Value

Discussing meme coins, CZ defined them as one of the riskiest assets in the crypto market. Most meme coins lack practical functionality and depend solely on market sentiment and speculative inflows. These assets are at a stage where cultural value replaces fundamental value.

In contrast, Dogecoin demonstrates that some meme coins can survive more than ten years if they have genuine cultural support. However, this is more of an exception. Without a solid foundation, the speculative boom in meme coins quickly fades — a phenomenon similar to cycles in the NFT market, where hype without fundamental backing almost always ends in a crash.

Structural Problems: Why Technology Only Accelerates the Uncovering of Existing Flaws

Responding to concerns about potential bank crises driven by artificial intelligence, CZ highlighted a fundamental difference: technology itself does not create risk; it merely accelerates the detection of existing structural problems.

If a bank has hidden liquidity mismatches, faster withdrawals will only reveal this issue sooner. Slowing down processes does not solve the core imbalance — it only masks it. Using Binance as an example, CZ demonstrated the resilience of crypto platforms: the exchange received $14 billion in net withdrawals in one week, with peak daily volumes reaching $7 billion without any liquidity issues.

Traditional banks rarely withstand such pressure due to fractional reserve systems — a structural weakness, not a consequence of technological development. This means that the main problem of the traditional banking system lies not in operational speed but in insufficient capital reserves.

Global Regulation: From Fragmentation to Harmonization

At this stage of the crypto industry’s development, global regulation remains deeply fragmented. Each country adheres to its own regulatory approaches or lacks them altogether. Unlike the banking sector, where regulation is largely harmonized, rules regarding cryptocurrencies vary sharply across jurisdictions.

Binance currently holds 22–23 international licenses, illustrating the complexity of the current state. Most countries are still developing comprehensive legislative frameworks for cryptocurrencies. Key legislative initiatives, including US proposals on crypto market structure, are still in the process of formation.

Passporting Stage: Practical Step Toward Harmonization Under Global Oversight

CZ explicitly emphasized that a single global regulator for cryptocurrencies remains unlikely in the near future. The reasons are fundamental differences in tax systems, capital controls, and national priorities.

Instead, regulatory passporting should become the next stage of development. This model assumes that a license obtained in one jurisdiction could be automatically recognized in others, enabling faster compliance for international operations without creating new global oversight bodies. Thus, instead of a utopian single regulator, the world will move toward mutual recognition and harmonization of standards.

CZ is currently advising several governments on developing their cryptocurrency policies, confirming an understanding of this issue at the highest levels of governance. The conclusions voiced in Davos reflect a multifaceted and realistic view of the evolution of the crypto market — a perspective that demonstrates awareness of both the potential and the real risks, which require pragmatic solutions at each stage of adopting new financial technologies.