Binance CEO CZ Explores Diversifying Stablecoin Strategy, Eyes Smaller Algorithmic Tokens
During a Twitter "Ask Me Anything" (AMA) session on July 31, Binance CEO Changpeng "CZ" Zhao expressed his intention to introduce smaller algorithmic Stablecoins to the market for investors to have alternatives to the existing global Stablecoin giants.
In the session, CZ highlighted concerns associated with large Stablecoins like Tether and Binance USD.
While Tether holds the top spot in market cap, he expressed caution due to its lack of transparency, noting the absence of audit reports:
"I personally have not seen any audit reports of USDT. I don't think most people I spoke to have not seen that either. So it's kind of a black box because we just don't know."
The conversation about Stablecoins garnered significant attention during the AMA, as CZ shed light on the industry's complexities and the regulatory hurdles it faces, especially in New York.
He pointed out that stablecoins like Binance USD still carry unforeseeable risks despite being well-regulated and fully audited.
As a solution, CZ emphasized the exchange's commitment to collaborating extensively with various Stablecoin projects.
Binance is diversifying its stablecoin partnerships to spread risk across multiple assets. This strategy aims to enhance its offerings' diversity and minimize potential risks linked to relying solely on a single Stablecoin.
CZ emphasized the importance of avoiding a concentrated approach, asserting, "We shouldn't have a single bet."
This perspective was underscored by the regulatory action that led to the closure of BUSD, despite its comprehensive audit.
Binance is actively involved in developing algorithmic Stablecoins to address regulatory and transparency concerns.
CZ revealed that a specialized team works on algorithmic Stablecoins in
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