Manama, Bahrain: Artificial intelligence is set to become one of the most powerful forces driving global cryptocurrency adoption, according to Changpeng Zhao (CZ), the former chief executive of Binance, the world’s largest cryptocurrency exchange.
Speaking at the FinTech Forward event in Bahrain on Thursday, Zhao said that as AI technology advances at an unprecedented pace, it will amplify blockchain activity and significantly boost transaction volumes worldwide.
“I think AI is going to drive crypto like crazy,” Zhao told delegates. “AI will facilitate a thousand, or even a million times more transactions for everyone in the world.”
He added that artificial intelligence is uniquely aligned with blockchain technology, as its operations are better suited to decentralized systems rather than traditional financial infrastructure.
“AI can only use a blockchain; it’s not going to be able to use credit cards,” he explained. “So AI is different as a tool, but finance will happen on the blockchain. I think there are many, many areas for growth.”
Crypto’s Image Problem: “Misconceptions” Around Illicit Activity
Zhao also addressed what he described as widespread “misconceptions” about the association between cryptocurrencies and illicit activities. While digital assets often make headlines for their misuse, he argued that blockchain’s traceability actually makes it one of the most transparent tools for law enforcement.
“Every time something bad happens using crypto, it becomes a headline,” Zhao said. “But if you look at the numbers, the percentage of transactions that are bad in crypto is extremely low — less than 0.1 per cent. In traditional finance, that number is between 2 and 5 per cent.”
He emphasized that blockchain’s open and immutable ledger allows authorities to track transactions more efficiently than in traditional financial systems.
“Because crypto is fully traceable, it’s actually much easier to conduct law enforcement using blockchain,” he said.
U.S. Takes Steps Toward Crypto Legitimacy
Zhao pointed to recent legislative developments in the United States as a sign that the world’s largest economy is beginning to embrace cryptocurrencies within a regulated framework.
In 2025, the U.S. introduced several bills designed to provide clarity for digital assets and strengthen consumer protection. These include the Clarity Act, the Anti-CBDC Surveillance State Act, and the Genius Act, which collectively aim to support innovation while safeguarding the role of the U.S. dollar as the world’s reserve currency.
“Legitimacy is coming from the U.S. government adopting crypto,” Zhao said. “Once the U.S. puts strong regulations in place, it will drive broader adoption globally.”
GCC Leads Global Crypto Regulation
While the U.S. and other Western economies work toward establishing comprehensive digital-asset regulations, Zhao praised Gulf countries, particularly Bahrain and the United Arab Emirates, for taking an early lead in regulating the sector.
“Bahrain is one of the leading regulatory bodies in the whole space, but many people don’t know about it,” he said. “The UAE is also very strong — both Abu Dhabi and Dubai are extremely forward-thinking when it comes to blockchain and crypto regulation.”
Bahrain was one of the first countries in the Middle East to establish a regulatory framework for crypto assets. The Central Bank of Bahrain (CBB) launched its Crypto-Assets Module to govern licensing, supervision, and operational procedures for crypto-asset service providers, setting a precedent for the region.
Similarly, the UAE has positioned itself as a global innovation hub in blockchain and digital finance. The country established the Virtual Assets Regulatory Authority (VARA) in Dubai and the Abu Dhabi Global Market (ADGM) regulatory framework to oversee and support the growing digital-asset ecosystem.
These forward-looking efforts have attracted numerous global blockchain companies to set up operations in the Gulf, drawn by the region’s clear regulations, favorable tax regimes, and ambitious smart economy initiatives.
Gulf Crypto Market Poised for Strong Growth
The Gulf region’s commitment to blockchain adoption is paying off. The cryptocurrency market across the GCC was valued at $744.3 million in 2024 and is projected to grow at a compound annual growth rate (CAGR) of nearly 17%, reaching $3.48 billion by 2033, according to data from the Imarc Group.
The report attributes this growth to a combination of digital transformation, pro-innovation government policies, and increasing interest in decentralized finance (DeFi).
“The market is experiencing significant growth, mainly driven by increasing digital transformation, government blockchain initiatives, and rising interest in decentralized finance,” the report stated.
With robust internet infrastructure, high smartphone penetration, and a tech-savvy population, Gulf economies are emerging as global leaders in blockchain and cryptocurrency innovation.
The Next Wave: AI Meets Blockchain
Experts say the intersection of AI and blockchain could redefine the future of finance, enabling smarter automation, more secure digital identities, and advanced decentralized applications.
For Zhao, this convergence represents an inevitable and transformative next step.
“AI will not just change how we use crypto — it will change how value moves across the world,” he said. “As AI systems transact autonomously, the blockchain will be their foundation.”
As both technologies continue to mature, their combined potential could push digital finance into a new era — one defined by transparency, automation, and global accessibility.
