Binance CEO Changpeng Zhao (also known as "CZ") said in a statement on Twitter Spaces that over time, the cryptocurrency industry may start to move to stablecoins based on the euro, yen or Singapore dollar , and reduce reliance on dollar-based stablecoins.
When asked if the crypto industry should consider using gold instead of the U.S. dollar as a basis of value, CZ agreed that it would be a wise choice. Nonetheless, he pointed out that most people still rely on fiat currencies for their day-to-day spending and thus prefer to measure their investment returns in dollars, which is why dollar-backed stablecoins are still indispensable for now. Meanwhile, CZ believes that the U.S. government’s latest actions against U.S. dollar-backed stablecoins will lead to a shift in global cryptocurrencies’ dependence on other currencies such as the euro, yen, and Singapore dollar.
CZ asserted that in the near future, algorithmic stablecoins may become a more ubiquitous part of the crypto ecosystem. However, he warned that they "inherently contain risks" that fiat-backed stablecoins do not, and should be transparently disclosed to ensure users know so they can act when deciding which type of coin to use or hold. make wise decisions.
CZ’s comments come a day after the U.S. Securities and Exchange Commission accused U.S. dollar-based stablecoin Binance USD (BUSD) of being an unregistered security in violation of U.S. law. Back in May, the algo TerraUSD (UST) had been de-pegged from the U.S. dollar, costing investors around $20 billion globally.
