- Banks cannot handle as much volume as crypto exchanges.
- Crypto exchange platforms are expanding into regulated environments.
- Governments and institutions are exploring blockchain infrastructure for real-world assets.
Binance founder Changpeng Zhao has said that traditional banks cannot handle the volumes that cryptocurrency exchanges can. Zhao made the statement during the recently concluded World Economic Conference in Davos, Switzerland.
$7 Billion Withdrawn in One Day
To explain his view, Zhao cited an event in December 2023 when Binance processed $7 billion in withdrawals in a single day, and $14 billion by the end of the week, without any issues. According to him, no traditional bank has the capacity to handle such a volume within a similar period.
Zhao’s stance highlighted how far the crypto industry has come and how much it has scaled, particularly in finance. He noted the growing dominance of crypto exchange platforms like Binance and Coinbase, citing their expansion into regulated environments and their role as gateways between traditional finance and digital assets.
Digital Assets Have Encroached into Mainstream Finance
Meanwhile, the renowned entrepreneur acknowledged the growing prominence of stablecoins in the digital asset sector. According to him, it is a digital asset class that is quietly becoming the financial bridge between fiat systems and blockchain networks, enabling faster and more efficient global transfers.
Beyond the roles of crypto exchanges and stablecoins in facilitating global financial transactions, Zhao highlighted how governments and institutions are exploring blockchain infrastructure for real-world assets, alongside the growing use of cryptocurrency as invisible payment rails. The technology is becoming more prominent in powering transactions behind the scenes without users realizing it.
Cryptocurrency Has Become a Part of the Core System
Besides Zhao, other prominent stakeholders in the crypto industry, including Coinbase CEO Brian Armstrong, reinforced the industry’s case for economic freedom, highlighting the role of Bitcoin and cryptocurrency in a more open system.
It is worth noting that the Davos conference in 2026 released a paper highlighting growing collaboration between banks and blockchain networks. The paper signals a shift in the institutional adoption of cryptocurrency from experimentation to implementation. It has become apparent that crypto is no longer on the sidelines as an outsider trying to prove itself, but in the mix as a stakeholder that is becoming a part of the core architecture of global finance..
Related: Binance Founder CZ Slams Fractional Reserve Banking at Davos, Cites Liquidity Risks
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