In the wake of the recent actions by the SEC against Paxos, the issuer of BUSD, CZ, CEO of Binance revealed during an AMA that the industry should be ready to see new classes of stablecoins.
These stablecoins will be pegged on other currencies such as the Japanese Yen, and the Euro. The CEO said that issuers of stablecoins backed by these currencies are already in touch with Binance.
A few days ago, the SEC ordered Paxos to distance itself from issuing BUSD (Binance USD), a USD-pegged stablecoin that Paxos issues in partnership with Binance. The SEC said that Paxos was guilty of offering BUSD without following the guidelines needed to issue a security.
The SEC argues that BUSD is a security and must be treated as accordingly. This stance by the SEC has caused a divide in the crypto space on the safety of Binance.
In addition, he noted during the AMA that algorithmic stablecoins will also become more popular over time. However, as the collapse of Luna showed, this set of stablecoin will not be without its challenges.
Algorithmic stablecoins are backed by an on-chain algorithm that rules the supply and demand pattern between them and another cryptocurrency. For example, UST was a stablecoin that was connected to Luna, a token that was also issued by the same company, Terra.
Banks leaving crypto, BNB on Greenfield, and NFTs
CZ also added that the pressure from the collapse in the crypto space last year which came with lots of losses as well as regulatory restrictions are making a lot of banks leave the crypto industry.
He revealed that Binance has lost connections with certain banks that are trying to adjust to the new realities despite an initial attraction for crypto last year.
Speaking about the future of BNB and the Binance ecosystem, CZ said that the BNB Greenfield, the third blockchain in the BNB ecosystem that is linked to data storage and cloud computing, will be coming soon. With Greenfield, users can store their data on a distributed network, access it using smart contracts and monetize it on platforms that trade data.
The CEO of Binance noted that he is neither an avid trader or NFT collector. “I am not a trader. I don’t buy NFTs,” he said while explaining that he has lost most of the NFTs given to him by several projects. However, he emphasized that NFTs are an important aspect of the crypto world and have a lot of utilities to offer the industry.
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