CZ: The stable currency supported by legal currency will not exist for a long time. It is expected that this year will be a year of recovery of encryption adjustment

On March 8, CZ said in the AMA that the stable currency supported by the legal currency will not exist for a long time, and the stable currency will continue to evolve and iterate. In the long run, stable currencies supported by illegal currencies may dominate in 10 to 20 years. It is expected that this year will be a year of recovery of encryption adjustment, and there is no expectation of setting a new high.

Interpretation of this information:

The message highlights the thoughts shared by CZ, the CEO of Binance, during an Ask Me Anything (AMA) session held on March 8. CZ stated that stablecoins supported by legal currencies are unlikely to exist for a long time, as they will continue to evolve and iterate. Illegal-currency-supported stablecoins, on the other hand, may dominate the market within 10 to 20 years.

CZ’s statement suggests that stablecoins, which are digital currencies that are backed by an asset such as a fiat currency or a commodity, may continue to evolve and change over time. This could be due to changes in the market or advancements in technology. It is also possible that the current stablecoins may become obsolete due to the arrival of better alternatives.

The CEO’s prediction that illegal-currency-supported stablecoins may dominate the market in the future can be interpreted in different ways. One possibility is that he is referring to stablecoins that are supported by cryptocurrencies that are not recognized as legal tender. In such a scenario, these stablecoins may be more widely accepted and used than stablecoins that are supported by fiat currencies.

Another possible interpretation is that CZ is referring to stablecoins that are not backed by any asset, such as Tether (USDT). These stablecoins, also known as algorithmic stablecoins, use algorithms to maintain a stable value. While they may not be supported by legal tender, they are not exactly illegal.

CZ also shared his outlook for the cryptocurrency market this year, stating that it will be a year of recovery from the recent corrections. However, he did not expect the market to set a new high.

In summary, CZ believes that stablecoins supported by legal currencies will not exist for a long time and that stablecoins will continue to evolve and iterate. He also predicts that stablecoins supported by illegal currencies may dominate the market within 10 to 20 years. Finally, he believes that the cryptocurrency market will recover this year, but a new high is unlikely to be achieved.