CZ: Binance did not get any additional benefits from BUSD

On March 8, CZ, the founder of Binance, said in the AMA that Binance had not obtained any additional benefits from BUSD, and was currently considering stable currencies other than US dollars, as well as other stable currency issuers.

Interpretation of this information:

CZ, the founder of Binance, announced in an AMA on March 8 that Binance had not received any extra benefits from its BUSD (Binance USD) stablecoin. Additionally, he stated that the company was contemplating other stable currencies outside of the US dollar, as well as other stablecoin issuers.

Binance, founded in 2017, is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of over $40 billion. The platform issued its USD-backed stablecoin, BUSD, in September 2019 in collaboration with Paxos, a regulated trust and settlement company. Initially, the goal was to reduce customers’ exposure to volatility in the crypto market while also providing a stablecoin alternative to competitors such as Tether (USDT), USDC, and others.

BUSD, like other stablecoins, is linked to a fiat currency, in this case, the US dollar, to maintain a 1:1 peg. It is used to support crypto trading and payments, and can also be used for remittance and cross-border payments. Binance also recently announced that BUSD could be used for institutional loans, providing capital for borrowers while also earning them interest on their assets.

Despite the benefits of BUSD, CZ stated that Binance was considering other stablecoin alternatives. One of the reasons for this could be the legal unpredictability surrounding stablecoins, particularly those backed by the US dollar. Tether, the largest stablecoin by market cap, has faced numerous lawsuits and regulatory hurdles in recent years, with questions raised about its backing by US dollars.

As a result, CZ noted that Binance was contemplating working on other fiat currencies outside of the US dollar for its stablecoin offerings. This could mean adding support for stablecoins linked to other fiat currencies such as the euro, yen, or British pound. Furthermore, CZ stated that Binance was looking at other stablecoin issuers, indicating that the exchange may explore partnerships or collaborations with other regulated trust and settlement companies if it deemed it beneficial to do so.

In conclusion, Binance is evaluating its stablecoin offerings and considering alternatives to BUSD, claiming that they had not seen any added benefits from it. CZ stated that Binance could potentially support stablecoins linked to other fiat currencies, and also work with other regulated trust and settlement companies. The three keywords of this content are Binance, stablecoins, and BUSD.