Binance CEO: The Cryptocurrency market will likely switch to non-dollar stablecoins

Binance CEO – Following recent measures against the U.S. dollar-tied stablecoin BUSD, Changpeng Zhao, popularly known as “CZ,” claims that the industry may begin to employ stablecoins pegged to the euro, yen, or Singapore dollar.

According to Changpeng Zhao, the CEO of Binance, the crypto industry would “probably” begin adopting stablecoins based on the euro, yen, or Singapore dollar in the future, lessening its reliance on stablecoins based on the US dollar.

stablecoins like Tether have given rise to the need for other stablecoins that are not backed by the U.S. dollar.
In a Feb. 14 Twitter Spaces event, CZ was asked about the crypto industry using gold as a standard of value instead of the U.S. dollar. He agreed that it “makes sense” to use gold, but pointed out that most people’s costs are still in fiat currencies. For this reason, most people calculate their investment returns in dollars, which is why U.S. dollar-backed stablecoins are “still important.”

Binance CEO The Cryptocurrency market will likely switch to non-dollar stablecoins
Binance CEO The Cryptocurrency market will likely switch to non-dollar stablecoins

However, CZ argued that the U.S. government’s recent actions against the U.S. dollar. stablecoins like Tether have given rise to the need for other stablecoins that are not backed by the U.S. dollar.

There is a lot of pressure on U.S. dollar-based stablecoins from regulators, which is prompting the industry to move away to non-U.S.-dollar- based stablecoins. This will likely result in more euro-based or Japanese yen/Singapore dollar-based stablecoins. We are therefore looking for more options in different places.

In a recent interview, CZ of Binance said that algorithmic stablecoins may also play a larger role in the crypto ecosystem going forward. However, he cautioned that algorithmic stablecoins are “inherently gonna have risks” that fiat-backed stablecoins don’t have. In CZ’s view, these risks need to be disclosed transparently to users, and reserves for fiat-backed stablecoins also need to be disclosed.

He added that while algorithmic stablecoins may have some benefits over fiat-backed stablecoins, there are also risks that need to be considered. For example, it’s important to be transparent about the reserves backing up algorithmic stablecoins, as well as the risks associated with them.

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