It’s been just revealed that the CEO of Binance, Changpeng Zhao is making a stablecoin prediction. Check out the latest reports about all this below.
CZ makes stablecoin prediction
According to the latest reports, it seems that the CEO of crypto exchange giant Binance says investors may turn to non-US dollar-pegged and algorithmic stablecoins amid regulatory pressure on Binance USD (BUSD).
During a Twitter Spaces AMA on Feb. 14th, Changpeng Zhao explained why USD-pegged stablecoins are widely used.
“Stablecoins are still important. Most people’s costs are still in fiat currencies and so when they calculate returns, ROI, et cetera, when they calculate prices today, most people use US dollar prices for crypto because US dollar stablecoins are the most popular and the largest.”
It’s important to note the fact that this specific statement comes following reports that the U.S. Securities and Exchange Commission (SEC) considers initiating an enforcement action against crypto firm Paxos, which issues and operates BUSD in partnership with Binance, for violating investor protection laws.
As the online publication the Daily Hodl notes, the New York Department of Financial Services (NYDFS) also ordered Paxos to stop minting the stablecoin.
Zhao says the popularity of US-pegged stablecoins could decline as regulators clamp down on these assets.
“I think given the current pressure and current stances taken by the regulators on the US dollar-based stablecoins I think that the industry will probably move away to a non-US dollar-based stablecoin and maybe also back to algorithmic (algo) stablecoins.”
Bitcoin is about to start a new leg up
According to the latest reports, it seems that a popular crypto strategist believes that Bitcoin (BTC) is gearing up for a fresh rally. This could happen after the king crypto lost over 10% of its value over the past weeks.
Analyst Jason Pizzino said recently that he believes Bitcoin is still bullish, but he thinks the top crypto by market cap can go lower in the short term.
