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CZ: 'Fractional Reserve System' Root of Bank Liquidity Crisis, Physical Bank Demand to Sharply Decrease in Next Decade
Summary: During the 2026 Davos World Economic Forum, CZ stated that technology itself does not bring risks but accelerates the exposure of existing problems, pointing out that the root of the bank liquidity crisis lies in the 'fractional reserve system.' Using Binance as an example, he mentioned that the platform once handled withdrawals of up to ...
During the 2026 Davos World Economic Forum, CZ stated that technology itself does not bring risks but accelerates the exposure of existing problems, pointing out that the root of the bank liquidity crisis lies in the 'fractional reserve system.' Using Binance as an example, he mentioned that the platform once handled withdrawals of up to $7 billion in a single day without overall pressure. CZ predicted that with the maturity of blockchain and KYC technology, the number of physical bank branches will significantly decrease in the next decade. At the same time, he expressed reservations about direct Bitcoin payments and meme coins, believing that meme coins are highly speculative and most will struggle to last, with only a few like Dogecoin potentially enduring due to cultural value.
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Link: CZ: 'Fractional Reserve System' Root of Bank Liquidity Crisis, Physical Bank Demand to Sharply Decrease in Next Decade [Copy]
