The CEO of Binance said that the cryptocurrency market would most likely switch to non-dollar stablecoins
According to a statement made on Twitter Spaces on February 14 by Binance CEO Changpeng Zhao, also known as “CZ,” the cryptocurrency industry will “probably” start using stablecoins based on the euro, yen, or Singapore dollar in the future, reducing its reliance on stablecoins based on the US dollar.
In response to a query regarding the cryptocurrency industry utilizing gold as a standard of value instead of the US Dollar, CZ made the declaration. CZ concurred that using gold “makes sense.” The majority of people’s expenses are still in fiat currencies, though. Because most investors compute their investment returns in dollars, US Dollar-backed stablecoins are “still significant” for this reason.
However, CZ stated that the worldwide crypto industry will likely turn to other currencies like the Euro, Yen, and Singapore Dollar to back stablecoins as a result of the US government’s recent efforts against US dollar stablecoins, as he explained:
“I think given the current pressure and current stances taken by the regulators on the US Dollar based stablecoins, I think that as you said the industry will probably move away to non US dollar based stablecoins[…]as a result of this we probably will see more euro based or other Japanese yen, Singapore dollar based stablecoins, so it’s actually prompted us to look for more options in different places.”
According to CZ, algorithmic stablecoins might also have a bigger impact on the crypto ecosystem in the future. While algorithmic stablecoins don’t have the same risks as fiat-backed stablecoins, he issued a warning against them. According to CZ, users need to be transparently informed of these dangers, as well as the reserves for fiat-backed stablecoins. This manner, “users can very clearly decide what is going on” and choose the stablecoins they choose to hold or employ for their own purposes.
CZ’s comments come the day after the SEC claimed that Binance USD ($BUSD), a stablecoin based on the US currency, was an unregistered “security” under American law.
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