Crypto Industry to Move Away from US Dollar Stablecoins
• Binance CEO Changpeng Zhao (CZ) believes that the crypto industry may start to use stablecoins pegged to the euro, yen, or Singapore dollar following recent actions against the U.S. dollar-pegged stablecoin BUSD.
• CZ suggests that this shift away from relying on the U.S. dollar could be due to recent regulatory pressure, and believes that more euro-based or Japanese yen/Singapore dollar based stablecoins will be created as a result.
• CZ also agrees with the idea of using gold as a standard of value instead of the US dollar, but notes that most people’s costs are still in fiat currencies and so U.S. dollar-backed stablecoins are “still important” for now.
Binance CEO Suggests Crypto May Move Away From USD Stablecoins
Binance CEO Changpeng Zhao (CZ) recently suggested that the crypto industry may move away from relying on U.S.-dollar backed stablecoins in favour of other currency backed coins such as euros, yen or Singapore dollars due to recent regulatory pressures against USD pegged coins such as BUSD. CZ also agreed with the idea of using gold as an alternative standard of value instead of the U.S. Dollar but noted that most people’s costs are still calculated in fiat currencies, making USD coins “still important” for now.
Recent Regulatory Pressure Against USD Coins
CZ gave his statement during a Twitter Spaces event in response to a question about using gold as a standard value instead of US Dollars and acknowledged that it makes sense to use gold for this purpose; however he noted that most people’s costs are still calculated in fiat currencies which is why US Dollar backed stablecoins remain important for now.
Shift To Other Currency Backed Coins
Given current pressures from regulators acting against US Dollar-based stablecoins, CZ suggested that it is likely there will be an increase in usage of other currency based coins such as Euros, Yen or Singapore Dollars instead which could prompt more options being looked at in different places.
Agreement On Gold Standard Of Value
Whilst emphasising the importance of US Dollar backed coins for now given its status as a global reserve currency, CZ did agree with ideas around utilising gold standards instead noting it makes sense to do so.
Conclusion
In conclusion, whilst US Dollar backed coins remain important currently due to their status as global reserve currency, recent regulatory pressures suggest we may see an increase in usage of other currency-backed coins such as Euro or Yen/Singapore Dollars moving forward and potentially even see ideas around utilising a gold standard gain traction too.