CZ: Binance is not a stable currency issuer, and BUSD is not a good business for us

According to reports, CZ said in the official Twitter Space of Binance that after the US regulatory crackdown, the cryptocurrency industry may move away from the stable currency linked to the US dollar and even re-examine the algorithm equivalent. At present, there is great pressure on the stable currency, which will narrow the dollar stable currency market, so the industry is exploring other options. We will see more stable currencies based on the euro, yen and Singapore dollar. The regulatory crackdown on the stable currency by regulators was partly caused by the collapse of the stable currency of Terra Luna algorithm in May.

Interpretation of this information:

The recent regulatory crackdown on stable currencies linked to the US dollar has led to concerns among industry players. CZ, the CEO of Binance, expressed in an official Twitter Space that the industry may move away from such currencies and explore other options. The pressure on dollar-linked stable currencies is increasing, leading to a potential shift towards stable currencies based on other currencies such as the euro, yen, and Singapore dollar. The collapse of the stable currency of Terra Luna algorithm in May contributed to the regulatory scrutiny on stable currencies.

The cryptocurrency industry has been grappling with regulatory pressure amid concerns over the legitimacy and stability of the market. The US regulatory crackdown on stable currencies, which are pegged to the US dollar to minimize price fluctuations, has added to this pressure. While stable currencies have been popular in the industry due to their relative stability, the recent regulatory actions have cast doubt on their sustainability.

CZ’s comments suggest that the industry may have to re-evaluate its reliance on the US dollar and explore other options to build stable currencies. The move towards stable currencies based on other major currencies may provide a more diversified and stable portfolio for investors. The potential shift may also reduce the risk associated with regulatory scrutiny on stable currencies that are pegged to the US dollar.

Overall, the cryptocurrency industry is likely to see a significant transformation in the way stable currencies are created and managed. The increasing regulatory pressure and the collapse of the Terra Luna algorithm in May have triggered a paradigm shift in the industry. Investors should keep a close eye on the trends and developments in the market to make informed decisions.