• CZ, CEO and co-founder of Binance, addressed rumors that Circle had told New York regulators to look into Paxos and BUSD.
• He believes there is no substance to these reports, and welcomed more stablecoin alternatives in the marketplace.
• CZ also mentioned that USD-backed stablecoins are still important, but the industry may move away from them and back to algorithmic ones with transparent reserve management.
CZ Addresses Rumors About Circle Telling Regulators To Look Into Paxos/BUSD
CZ, CEO and co-founder of Binance, recently addressed rumors that Jeremy Allaire, founder of Circle, secretly told New York regulators to look into Paxos and BUSD during a Twitter Spaces AMA on Feb. 14th. CZ said he believed there was no substance to this report.
Welcomed More Stablecoin Alternatives
CZ welcomed more stablecoin alternatives in the marketplace saying he ultimately supported more diffusion and competition in the marketspace. He mentioned that even if there was a peg loss for algorithmic stablecoins, it could still create an economic opportunity for people as long as it was done in a way that made sense.
Stablecoins Still Important
CZ added that stablecoins themselves are not to blame but added that more transparency and communication with consumers would be key to avoiding another TerraUSD (UST) incident. He stressed however that more thought was needed into the topic but said the industry must come together to find collective solutions regardless.
Moving Away From USD-Backed Stablecoins?
He also said that while USD-backed stablecoins are still important because most people’s costs are still in fiat currency; the industry may move away from them towards non-US dollar based ones or back to algorithmic ones with transparent reserve management.
Collective Solutions Needed
In order for this transition to work smoothly however, CZ said collective solutions were needed from all players involved within the industry so as not create difficulties for consumers down the line.
