CZ: Euro, Yen, and Singapore Dollar Stablecoins Will Likely Replace USD-backed Stablecoins

On a Twitter Spaces last night, Binance CEO Changpeng Zhao, also known as CZ, stated that the crypto industry will likely shift away from relying on US dollar-based stablecoins in the future. Instead, he believes that stablecoins backed by the euro, yen, or Singapore dollar will become more prevalent.

While CZ acknowledges that gold would make sense as a standard of value, he notes that most people still calculate their investment returns in fiat currencies, making US dollar-backed stablecoins important for now. He also suggests that recent US government actions against US dollar stablecoins will prompt the industry to look for stablecoins based on other currencies.

CZ believes that algorithmic stablecoins may also play a larger role, but these come with inherent risks that need to be transparently disclosed to users.

CZ also disclosed that after Luna and FTX, the regulation has become more stringent, and many traditional banks no longer cooperate with cryptocurrencies or are very careful. Binance has lost some traditional banking partners, which will hit the industry in the short term.