CZ Charts Crypto’s Next Frontier: Tokenization, AI, and Payments to Fuel Future Growth

Changpeng Zhao (CZ), founder and former CEO of Binance, made a significant appearance at the World Economic Forum (WEF) in Davos, Switzerland, on January 22nd. Participating in the “New Era for Finance” panel, CZ outlined three pivotal engines he believes will propel the cryptocurrency industry into its next phase of development: **asset tokenization, cryptocurrency payments, and the integration of artificial intelligence (AI) with cryptocurrencies.**

Zhao acknowledged that within the current crypto landscape, only two sectors have truly demonstrated sustainable “blood-making ability” and mature business models: **cryptocurrency exchanges and stablecoins.** However, he expressed strong conviction that the upcoming growth wave will coalesce around three burgeoning new domains.

1. Real-World Asset (RWA) Tokenization: A Paradigm Shift in Finance

CZ posited that **tokenization** is poised to become the cornerstone of future finance, with a particular emphasis on government assets. He observed a growing trend among national governments increasingly viewing tokenization as an exceptionally efficient fundraising mechanism. This approach not only streamlines capital acquisition but also offers unparalleled flexibility in directing funds towards specific initiatives, such as tourism infrastructure development or trade market construction.

Intriguingly, Zhao revealed that he is actively engaged in advanced discussions with approximately 12 national governments. These dialogues explore innovative strategies for tokenizing national assets—including bonds and infrastructure equity—via blockchain technology, thereby enabling more agile and adaptable capital mobilization.

2. The Evolving Landscape of Cryptocurrency Payments

Despite over a decade of development in Bitcoin and broader cryptocurrency payments, CZ noted that their real-world adoption has not met initial expectations, preventing them from becoming a mainstream payment method. Yet, he underscored that such a development trajectory is not uncommon for disruptive technologies.

The early stages of revolutionary innovations often involve extensive experimentation and iterative trial-and-error, with only a select few ultimately achieving exponential impact. Zhao further elaborated that while direct consumer payments with cryptocurrencies remain infrequent, the underlying technology is progressively being integrated into traditional payment ecosystems, serving as a crucial component for backend settlement and cross-border clearing.

3. Artificial Intelligence (AI) and Crypto: A Symbiotic Future

Zhao identified artificial intelligence (AI) as the third critical catalyst for the crypto industry’s advancement. In his vision, cryptocurrencies are destined to become the native transactional medium for AI Agents. Within this framework, cryptocurrencies transcend their role as mere investment vehicles, evolving into the fundamental infrastructure underpinning the burgeoning AI economy.

CZ Cautions Against the Meme Coin Frenzy

Addressing the recent surge in meme coin popularity, Zhao unequivocally stated that meme coins represent the highest-risk segment within the cryptocurrency market. He argued that the vast majority of meme coins lack practical utility, relying instead on market sentiment and speculative capital for their propulsion, making their long-term survival highly improbable.

While acknowledging a few rare exceptions, such as Dogecoin (DOGE), which has endured for over a decade, CZ stressed that such cases are outliers. He firmly believes that most meme coins are unsustainable, and only projects imbued with genuine cultural significance and strong community identity possess the potential for lasting existence.

Zhao drew a parallel between this phenomenon and the NFT market, adding that without fundamental support, speculative bubbles are prone to rapid dissipation.