Changpeng Zhao (CZ), who is the CEO of Binance, said that it is likely that their industry will use stablecoins that will be pegged to the euro, yen or Singapore dollar, following recent actions against the BUSD stablecoin pegged to the USD dollar. Regarding this news, CZ has given his statement through the Twitter Spaces event which took place on February 14 yesterday. Twitter spaces discuss answers to questions about the crypto industry using gold as a value standard, not the US dollar.



changpeng zao
Changpeng Zao

Changpeng Zhao agrees that it makes sense for crypto to use gold rather than USD. However, according to him, the fees that most people use are still in fiat currency, and for this reason, most people calculate the return on their investment in dollars, which is why the US dollar-backed stablecoin is still important. However, according to CZ, the recent US action against stablecoins the US dollar may make the global crypto industry will rely on other currencies such as the euro, yen and also the Singapore dollar to support stablecoins. 


CZ said that stablecoin algorithms could play a bigger role in the crypto ecosystem in the future. However, he warned that the algorithm would inherently have risks that fiat-based stablecoins do not have. According to him, this risk needs to be disclosed transparently to all users, and reserves for fiat-backed stablecoins also need to be disclosed. So that through this way users can clearly decide what is happening and make their own decisions regarding which stablecoin they will use later. CZ's remarks came a day after the SEC accused the dollar-based stablecoin BUSD of being listed as an unregistered security under U.S. law. The USD-backed stablecoin UST algorithm lost its peg in May causing losses of more than $20 billion for investors. 

 


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