BlocksInform
The crypto industry will “probably” start using euro, yen, or Singapore dollar based stablecoins in the future, reducing its reliance on US dollar based stablecoins, according to a Feb. 14 statement on Twitter Spaces by BINANCE CEO Changpeng Zhao, also known as “CZ.”
CZ provided the statement in response to a question regarding the cryptography industry using gold as a value standard instead of the US dollar. Cz has agreed that using gold is "meaningful". However, "the costs of most people remain in fiat currencies." For this reason, most people calculate their return on investment in dollars, which explains why we dollar guaranteed stableoins are "always significant.”
However, CZ argued that the US government’s recent actions against US dollar stablecoins will probably lead the global crypto industry to rely on other currencies such as the Euro, Yen, and Singapore Dollar to back 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.”
Related: SEC Lawsuit against Paxos over BUSD baffles crypto community
CZ said that algorithmic stablecoins may also play a larger role in the crypto ecosystem going forward. However, he warned that algorithmic stablesoines are "intrinsically going to have risks" that the supported stablesfiat have not. In the opinion of cz, these risks should be disclosed in a transparent manner to users, and reservations for guaranteed insurance should be disclosed as well. In this way, "users can very clearly decide what is happening" and decide for themselves the values they wish to keep or use.
CZ’s statements came just a day after the SEC accused US dollar based stablecoin Binance USD (BUSD) on of being an unregistered “security” under U.S. laws. The algorithmic stablecoin, TerraUSD (UST) lost its peg to the US dollar in May, causing over $20 billion in losses to investors.
