Singapore, April 14, 2025 – Changpeng Zhao (CZ), the former CEO of Binance, has stirred the financial world with a bold prediction: artificial intelligence (AI) systems will abandon fiat currencies in favor of cryptocurrencies. Speaking at a blockchain conference in Singapore, CZ emphasized the unique attributes of crypto that align with AI’s operational needs, signaling a potential paradigm shift in how digital economies function.

“AI doesn’t think like humans—it’s logical, borderless, and efficient. The currency AI’s gonna use isn’t fiat; they’re gonna use crypto,” CZ declared, highlighting crypto’s decentralized nature, instant transaction capabilities, and global accessibility. He argued that fiat systems, burdened by slow cross-border settlements and regulatory constraints, are ill-suited for AI-driven economies where speed and autonomy are paramount. For instance, stablecoins like USDT, which processed $53 trillion in on-chain transactions in 2024 according to Visa, offer the kind of frictionless, programmable money that AI systems could leverage for seamless microtransactions.

CZ’s comments come at a time when AI and blockchain integration is gaining momentum. AI systems managing supply chains, smart contracts, or decentralized finance (DeFi) platforms increasingly require currencies that operate 24/7 without intermediaries. Bitcoin, with its $1.7 trillion market cap as of March 2025, and Ethereum, which powers most DeFi applications, are prime candidates. CZ pointed to Ethereum’s layer-2 solutions, which have reduced transaction fees by 90% since 2023, as an example of crypto’s scalability for AI use cases.

The former Binance chief also noted the growing trend of tokenized assets—real-world assets like real estate or commodities digitized on blockchains—which AI could use for efficient resource allocation. BlackRock’s tokenized fund, launched in 2024, has already seen $2 billion in inflows, underscoring the mainstream adoption of such technologies. “AI will manage tokenized economies, and crypto is the native currency for that,” CZ added.

However, challenges remain. Regulatory uncertainty, particularly in the U.S., where the SEC has yet to clarify stablecoin classifications, could hinder adoption. Additionally, crypto’s energy consumption—Bitcoin mining alone consumed 121 TWh in 2024, per Digiconomist—raises concerns for AI systems prioritizing sustainability. Despite these hurdles, CZ remains optimistic, citing advancements like Ethereum’s proof-of-stake transition, which cut its energy use by 99.95%.

CZ’s vision aligns with broader market trends. With global crypto adoption reaching 562 million users in 2024 (Crypto.com), and institutional players like Metaplanet acquiring $26.3 million in Bitcoin this month, the infrastructure for AI-crypto synergy is solidifying. As AI continues to reshape industries, CZ’s prediction may herald a future where digital currencies become the backbone of autonomous, intelligent systems.