In light of the ongoing controversy surrounding BUSD, Binance CEO Changpeng Zhao lately said that the cryptocurrency industry might turn to stablecoins that are not pegged to the dollar.
According to (1) Zhao, the cryptocurrency ecosystem may soon utilize stablecoins pegged to the euro, Singapore dollar, or yen. This would lessen the need for tokens based on the United States dollar.
Yesterday, while participating in a Twitter Spaces event, Zhao made the following remarks:
"I think that considering the present stress and prevailing stances carried by the regulatory agencies on the US dollar-based stablecoins, I believe that, as you said, the sector will consider moving away to non-US-dollar- centered stablecoins"
The COE of Binance also mentioned the trend in the cryptocurrency sector toward using gold as a valuation benchmark rather than the US dollar. Zhao explained that "most people's costs are still in fiat currency," even though he conceded that using gold "makes sense."
Because of this, it is vital to use stablecoins backed by the US dollar because most investment returns are calculated in dollars.
The Chief Executive Officer of Binance expressed his opinion that algorithmic stablecoins and non-dollar stablecoins may play a major role in the future. On the other hand, Zhao warned that these stablecoins would inherently offer hazards that fiat-backed stablecoins do not have, and these stablecoins would be tethered to the US dollar.
Consequently, Zhao believes that users are responsible for keeping themselves apprised of these dangers so that they "can very clearly determine what is going on" in terms of their use of stablecoins.
CZ to Back "Non-Dollar Stablecoins."
Paxos was asked by the SEC to halt any additional issuances of BUSD stablecoins after the SEC warned the stablecoin issuer with a Wells Notice of its intention to sue.
Even though Paxos had not yet responded to the claims made by the SEC, a spokeswoman for Binance attempted to set the record straight at the time.
This spokesman claims that Binance has granted Paxos a license to use their brand, even though Paxos is the company that owns and distributes the product. In addition to this, the Binance official mentioned that the NYDFS oversees Paxos's regulatory compliance.
Before adding the following, the representative stated that the exchange would continue to keep a close eye on the situation involving the SEC and Paxos:
Stablecoins serve as an essential safety net for investors seeking sanctuary from uncertain markets."
In addition, Zhao clarified at that time that the Paxos' monies were secure and completely protected by certified bank reserves. In addition, the CEO of Binance indicated that in light of the SEC's charges, the NYDFS issued a directive to Paxos instructing them to stop minting BUSD tokens altogether.
Despite this, he also stated that he will maintain his support for BUSD "for the foreseeable future." Zhao added that consumers would eventually move to other stablecoins, resulting in essential product revisions.