CZ at Davos 2026: Crypto Payments, Meme Coins, and the Challenge of Global Regulation

Source: CritpoTendencia Original Title: CZ at Davos 2026: crypto payments, meme coins, and why global regulation remains distant Original Link: During the 2026 World Economic Forum in Davos, Changpeng Zhao (CZ) offered one of the most sober assessments of the current state of the crypto ecosystem. Far from the promotional optimism that usually dominates the sector, the co-founder of one of the leading platforms addressed the real limits of crypto payments, the highly speculative nature of meme coins, and the structural difficulties in achieving unified global regulation.

The tone of his remarks was consistent with the spirit of Davos: fewer promises and more realism about what works, what doesn’t, and what still needs to be resolved.

Crypto payment adoption remains below expectations

CZ acknowledged that, despite over a decade of development, cryptocurrency payments have yet to become a standard for everyday use. Bitcoin and other digital assets, he explained, are still far from being a conventional alternative for large-scale daily transactions.

To put this into perspective, he compared the evolution of crypto payments with other technological innovation processes: most initial experiments fail, but a few successful cases end up generating disproportionate impact. In this context, the lack of mass adoption does not invalidate the concept but does require adjusting expectations and timelines.

Meme coins: high risk and cultural survival

Regarding meme coins, CZ was even clearer. He pointed out that they are one of the highest-risk segments within the crypto market, dominated by speculation and sentiment, with little or no practical utility in most cases.

According to his analysis, only a minority of these assets manage to survive over time, and they do so not based on traditional financial fundamentals but on their cultural value. He mentioned examples like Dogecoin to illustrate that longevity in this segment is the exception, not the rule.

CZ compared this dynamic to what happened in the NFT market, where initial enthusiasm quickly faded in projects that lacked support beyond speculative narrative.

Crypto exchanges versus traditional banking

Another key point of his speech was the comparison between crypto exchanges and the traditional banking system, especially in the context of recent fears about bank withdrawals accelerated by artificial intelligence.

CZ argued that technology does not create risk but accelerates the exposure of pre-existing structural problems. If an institution has a liquidity mismatch, he explained, the speed of withdrawals only makes the problem more visible sooner. Limiting withdrawals does not solve the underlying fragility; it simply postpones its manifestation.

As an example, he cited the experience of a trading platform that faced net outflows of approximately USD 14 billion in one week, with daily peaks near USD 7 billion, without liquidity disruptions. In contrast, he stated that few traditional banks could withstand similar pressures due to the inherent weakness of fractional reserve systems.

A still fragmented crypto regulation

On regulatory matters, CZ was blunt: unified global regulation for cryptocurrencies remains unlikely in the short term. Unlike the banking system, whose rules are widely harmonized, the crypto regulatory framework remains fragmented, with each country progressing at its own pace—or not progressing at all—depending on fiscal priorities, capital controls, and political contexts.

He recalled that the main market players currently hold between 22 and 23 international licenses, but emphasized that most countries still lack comprehensive crypto legislation. Even in the United States, key projects like the market structure law are still in development.

The regulatory passport as a pragmatic solution

In this scenario, CZ proposed that a single global regulator is unrealistic. Instead, he suggested the concept of a regulatory passport as a more viable alternative. Under this model, a license obtained in one jurisdiction could be recognized in others, facilitating cross-border compliance without the need to create new supranational institutions.

Currently, CZ advises several governments on crypto policy design, and considers that this gradual approach better reflects the political and economic realities of the global financial system.

A cautious but structural vision

CZ’s comments at Davos did not aim to foster expectations of rapid growth or technological promises. On the contrary, they offered a structural reading of the crypto ecosystem, focused on risk management, adoption limits, and regulatory complexity.

In the context of the World Economic Forum, his message was clear: cryptocurrencies will not solve the flaws of the financial system on their own, but they also cannot be analyzed without understanding those flaws. Between enthusiasm and skepticism, Davos once again sent a familiar signal: the future is built more with structures than slogans.