According to Binance CEO Changpeng Zhao the crypto industry will probably start using euro, yen, or Singapore dollar-based stablecoins in the future, reducing its reliance on United States dollar-based stablecoins.
CZ gave the statement in a Feb. 14 Twitter Spaces event in answer to a question about the crypto industry using gold as a standard of value instead of the U.S. dollar. CZ agreed that it makes sense to use gold. However, most people’s costs are still in fiat currencies. For this reason, most people calculate their investment returns in dollars, which is why U.S. dollar-backed stablecoins are still important.
However, CZ argued that the U.S. government’s recent actions against U.S. dollar stablecoins will probably lead the global crypto industry to rely on other currencies such as the euro, yen and Singapore dollar to back stablecoins. CZ said that algorithmic stablecoins may also play a larger role in the crypto ecosystem going forward. However, he cautioned that algorithmic stablecoins are inherently going to have risks that fiat-backed stablecoins don’t have
