Binance's CZ Highlights Fractional Reserve Banking as Core Financial Risk Over AI Tech Concerns

At the 2026 World Economic Forum, Binance founder CZ responded to Hu Zuliu's warnings about AI-driven financial risks. CZ argued that the core financial risks stem from traditional banks' fractional reserve system, not technological advances. He emphasized that while technology improves efficiency, the fundamental flaw lies in the banking structure that creates liquidity vulnerabilities.