Binance founder CZ argued at the World Economic Forum that traditional banking’s fractional reserve system, rather than technology, presents the true risk to financial stability.
At the World Economic Forum in Davos 2026, Binance founder CZ highlighted that financial risks are rooted in the flaws of traditional banking, particularly the fractional reserve system. He argued that technology accelerates the detection of issues but does not create systemic risk. CZ contrasted Binance’s $14 billion in weekly withdrawals, successfully processed during the December 2023 crypto crash, with the liquidity pressures faced by traditional banks.