Binance CEO Changpeng Zhao talked about stablecoins like BUSD. There is huge regulatory pressure on these cryptocurrencies, which are mostly based on the US dollar. Zhao also shared his comments on what could happen if it is outlawed and banned by US regulators. In general, this style shrugged off the “ban” speculations. He thinks this is “like asking if the Moon will disappear tomorrow.” Here are the details…
Binance CEO talks about stablecoins
CZ spoke at a Twitter Spaces event. Here he stated that BUSD will not be at the forefront for regulators at this time. He also said that crypto exchanges will continue to be the center of attraction, especially after the FTX debacle and Crypto.com’s massive Ethereum (ETH) transfer to Gate.io. Answering questions about the news that Binance’s reserves are full of its own token BUSD, Zhao stated that it is “very normal” for exchanges to have large stablecoin reserves. He said that in a market downturn, users prefer stablecoins to cryptocurrencies.
When asked about regulatory clarifications regarding the risks of these stablecoins, Zhao underlined that Binance does not issue BUSD. However, he stated that Paxos issued the coin and, according to him, “Paxos did a great job”.
What if BUSD becomes illegal?
When asked about the risk of regulators banning stablecoins like BUSD, Zhao replied, “Your question is very hypothetical. You can also ask the one-on-one question about USDC,” he said. In addition, he used the following terms:
What if USDC gets banned tomorrow? We don’t know. It will definitely be negative for the department. Crypto will likely rise because people will buy crypto quickly because they have to get rid of USDC, but I cannot respond to hypothetical situations of what will happen tomorrow. The moon may disappear tomorrow. What will you do?
It all started with FTX
Koindeks.com As we reported, Binance announced that it will sell FTT, the local token of the currently bankrupt crypto exchange FTX. He explained that the reason behind this was the “early exit strategy”. Thus, he hinted that he thought there was a problem with FTX.
About this tweet, Zhao said that he did not see the funding of FTX, nor did he know how the user funds were used. However, the relative size of FTX, process volumes, and prices drew attention. He also said at the same time that the crypto exchange led by Sam Bankman-Fried always had a “hunch” in his head about big spending. Zhao used the following words:
Miami stadium (FTX Arena), acquisitions, investments in crypto projects. I always wondered where they got that much money from. We also knew how much money they had collected. They couldn’t have that much cash.
Binance CEO: Something’s not quite right
Zhao stated that the only other possible explanation is that Alameda is making tens of billions of dollars. But in this case, he said he thought they were defrauding users with measures worth billions of dollars. However, according to the wallet addresses, he explained that he thought to himself that even FTX does not have that much money. Zhao used the following terms:
So, I did some mental math and something really didn’t quite fit. But I did not look at the financial books. They could be doing something we’re too stupid to understand. They could be doing something much smarter, much more magical. There could even be false agreements where they took loans from venture capitalists. But I didn’t know for sure.