CZ's perspective at Davos 2026 on the scale of crypto and the future of payments

CZ’s remarks at the 2026 Davos Economic Forum, shared alongside international figures like Trump and Elon Musk, reflect a mature mindset about how crypto scales within the global financial system. Instead of adopting the familiar revolutionary narrative, CZ presents a pragmatic approach — crypto will not “conquer” TradFi, but both systems will be forced into an era of co-existence and deep integration.

Integration, Not Replacement — Crypto’s Scaling Strategy in the Global Payment System

The payments sector currently faces many structural challenges, but the future does not lie in crypto completely replacing traditional systems. Instead, crypto will be scaled as an additional layer of base infrastructure — increasing speed, reducing costs, and providing flexibility that TradFi cannot offer. This perspective differs from the “crypto will kill banks” prophecy often embraced by the community.

CZ also clearly states his position on Bitcoin and memecoins. He does not believe Bitcoin can scale into a daily payment medium, especially as Bitcoin today is evolving more into a store of value than a trading tool. Additionally, memecoins are considered too risky to scale at a systemic level because they are fundamentally psychological games and liquidity-driven, making long-term sustainability unlikely.

Bitcoin and Memecoins from a Pragmatic Perspective — Risks of Uncontrolled Scaling

This distinction reflects a mature view of crypto assets. Bitcoin, in its application scaling process, has proven to be more valuable as a store of value rather than a wearable payment tool. Meanwhile, memecoins represent a type of asset that cannot sustainably scale due to their psychological mechanisms.

CZ’s comments on the banking system are also noteworthy. He predicts that in the next 10 years, the number of physical banks will decline significantly. However, this is not because crypto directly “topples” the system, but because the current banking model is too costly to operate, too slow, and unsuitable for the continuous 24/7 digital transaction needs. Crypto acts as a catalyst, accelerating this evolution.

Banking Revolution and Regulatory Passport — A New Model for International Scaling

An interesting idea from CZ is the “regulatory passport” solution in crypto regulation. He admits that building a global crypto legal framework is unfeasible, so he proposes that if a company is licensed in a highly reputable country, that license could be recognized elsewhere. If implemented, this model would be a breakthrough for crypto’s international scaling, significantly reducing legal costs and enabling crypto companies to develop globally rather than being fragmented by national borders.

Regarding systemic risk, CZ emphasizes that faster and cheaper technology does not necessarily increase systemic risk. The core issue in banking is not technology but the fractional reserve model — where liquidity is always an illusion until trust collapses. Crypto, at least by design, is much more transparent in this aspect, thereby limiting the scale of systemic risk.

Real Growth Potential — Where Crypto Will Scale in the Next Decade

CZ’s statements at Davos show that he no longer views crypto from a revolutionary perspective but through the lens of someone who has experienced multiple market cycles. Crypto will not scale to replace everything, but it will infiltrate the weakest points of the current system — those gaps are where it will truly scale and develop over the next decade.

This outlook is not about a zero-sum battle between crypto and TradFi but about a co-evolution process where crypto gradually scales into areas where it has genuine advantages — speed, cost, and efficiency. That is the foundation for sustainable growth of crypto in the future.