Binance CEO Changpeng ‘CZ’ Zhao is looking to bring smaller algorithmic stablecoins to the market, in a bid to offer investors options other than the current global stablecoin giants.
Speaking in a July 31, ask me anything (AMA) session on Twitter, CZ cited risks associated with large stablecoins such as Tether (USDT) and Binance USD (BUSD), saying that while Tether is by far the largest stablecoin by market cap, he remains cautious of the asset due to its lack of transparency:
“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.”
Even supposedly well-regulated and fully audited stablecoins such as Binance USD come with their own set of unforeseeable risks, he added.
And we’re live!
Tune in to our Twitter Space with @cz_binance below https://t.co/KzU2bmdgxG
— Binance (@binance) July 31, 2023
On Feb. 13, blockchain infrastructure platform Paxos Trust Company ended its partnership with Binance and ceased minting new BUSD stablecoins, following an order from the New York Department of Financial Services (NYDFS).
“We should just work with as many stablecoins as possible. We shouldn’t have a single bet,” he said, highlighting that the regulator moved to shut down BUSD despite it being fully audited.
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