CZ Responds to Hu Zuliu's Warning on AI Amplifying Financial Risks: The Problem Lies Not in Technology, but in the Fractional Reserve System of Traditional Banks

Odaily News: At the World Economic Forum Annual Meeting 2026, Hu Zuliu, founder of Primavera Capital Group, and Binance founder CZ shared the stage. Addressing Hu Zuliu's concerns about systemic risks potentially triggered by generative AI, CZ stated that the root of financial risk lies not in technology, but in the fundamental flaws of the traditional banking system. If the financial system itself is healthy, more efficient and cheaper technology is always more beneficial than harmful. CZ also pointed out that the real hidden risk lies in the "Fractional Reserve System" of traditional banks. Under this system, once a bank faces liquidity pressure, the convenience of technologically-enabled withdrawals will only reveal the truth of its insufficient funds, and "slowing down withdrawals" does not solve the fundamental problem. (Caixin)