With the impending demise of the Binance USD coin, effectively canceled by U.S. regulators, multiple private and public entities have expressed interest in working with the world’s largest cryptocurrency exchange on a similar initiative, according to Binance’s chief strategy officer, Patrick Hillmann. “There are very interesting opportunities, particularly in Europe and the Middle East,” he told Forbes, though he would not provide further details.
A replacement might not be dollar-based.
Binance CEO Changpeng Zhao has said in a Twitter post that the company is exploring other issuers and non-USD based stablecoins.
“One of the many reasons it has taken so long for non-USD stablecoins to become prevalent is regulations,” said Kevin Zhang, cofounder of DFX Finance, a decentralized finance protocol for non-U.S. dollar stablecoins, in written comments to Forbes. “Stablecoin issuers are looking for ways to properly get regulated without making numerous assumptions and spending insane amounts of money on lawyers to provide opinions.”
However, the current situation creates an opportunity for non-USD stablecoins. “Binance being the size that they are and having the reach that they have will always be a relevant player in the stablecoin space. The denomination of trading pairs in certain stablecoins creates huge network effects,” he added.
Related Readings:
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Coinbase Says Stablecoins are not Securities, Condemns SEC Attack on BUSD
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