Binance CEO Predicts Shift to Non-Dollar Stablecoins

Binance CEO Changpeng Zhao makes a daring stablecoin forecast.
Changpeng Zhao guarantees that client finances are secure.
Paxos offered reserves that were audited and certified by other parties.

On Feb.14, Binance CEO Changpeng Zhao, better known as CZ, made a bold prediction in a tweet about the future of stablecoins in the crypto industry. According to CZ, stablecoins pegged to the US dollar may soon be replaced by non-dollar stablecoins.

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Changpeng Zhao said:

“Considering the heightened scrutiny of US dollar-based stablecoins, I believe that our industry will be driven to explore other non-dollar-based options like euro or yen-backed tokens. This has prompted us to look for alternatives from different regions and jurisdictions.”

The announcement from CZ came a day after Paxos, the issuer of Binance stablecoin BUSD, apparently faced SEC preparations to pursue prosecution against its US-dollar pegged currency.

As reported by Cryptonewsland, the New York Department of Financial Services (NYDFS) ordered Paxos, the issuer of Binance stablecoin BUSD, to halt its issuance of the dollar-pegged token. Moreover, the SEC issued Paxos Trust Co. with a Wells notice, signaling its plan to sue the company over allegations that BUSD is unregistered security.

Despite the NYDFS’s intended legal action, Binance CEO Changpeng CZ Zhao has guaranteed customers that their funds are safe. CZ also tweeted that Paxos is owned and managed by Paxos and that both are subject to oversight by the New York Department of Financial Services (NYDFS).

According to Paxos’s news release, the company will still handle redemptions and provide support for BUSD. Moreover, it guaranteed its reserves, which independent auditors have verified.

Zhao added that Binance would continue to offer the stablecoin on its exchange, even though users may migrate to other stablecoin tokens due to the enforcement action.

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.