BUSD

Gary

First Digital USD

Binance CEO Changpeng “CZ” Zhao is planning to introduce smaller algorithmic stablecoins to provide investors with alternatives to the existing dominant stablecoin giants in the market. 
During a recent Twitter “ask me anything” (AMA) session on July 31, CZ expressed concerns about the risks associated with large stablecoins like Tether (USDT) and Binance USD (BUSD). 
He highlighted the lack of transparency with Tether, which is the largest stablecoin by market cap, as there have been no audit reports available to verify its reserves. 
Even supposedly well-regulated stablecoins like Binance USD come with unforeseeable risks, as evidenced by Paxos Trust Company’s termination of its partnership with Binance and the New York Department of Financial Services’ order to cease minting new BUSD stablecoins. 
To mitigate these risks, CZ revealed that Binance is actively working on developing algorithmic stablecoins. 
Additionally, the company aims to diversify its stablecoin partnerships to spread potential risk across multiple assets. CZ emphasized the importance of not placing all their bets on a single stablecoin, given the inherent risks involved. 
Binance has plans to launch the First Digital USD in Hong Kong and is exploring new stablecoin options in Europe. 
First Digital USD is a programmable stablecoin pegged to the U.S. dollar and managed by First Digital Group, licensed in Hong Kong. It was recently listed on the Binance platform. 
However, Binance is facing regulatory uncertainty, as evidenced by the $1 billion lawsuit brought against CZ and the company by the Commodities Futures Trading Commission, which CZ seeks to dismiss, alleging overreach of jurisdiction. 
READ MORE: <a href="https://www.cryptointelligence.co.uk/sec-chairman-gary-gensler-raises-alarm-over-widespread-fraud-in-crypto-market/" rel="noopener noreferrer nofollow">SEC Chairman Gary Gensler Raises Alarm Over Widespread Fraud in Crypto Market</a> 
Additionally, the U.S. Securities and Exchange Commission filed a lawsuit against Binance, CZ, and affiliated entities on June 5, accusing them of involvement in the sale of unregistered securities, fraud, and conflicts of interest. 
In conclusion, CZ’s strategy to introduce smaller algorithmic stablecoins and diversify stablecoin partnerships aims to offer investors more options and reduce potential risks associated with dominant stablecoins in the market. 
Despite facing regulatory challenges, Binance is forging ahead with its stablecoin initiatives and expansion plans into different regions. 
Other Stories: 
<a href="https://www.cryptointelligence.co.uk/liquid-staking-tokens-poised-to-dethrone-ethereums-ether-eth-as-dominant-defi-asset/" rel="noopener noreferrer nofollow">Liquid Staking Tokens Poised to Dethrone Ethereum’s Ether (ETH) as Dominant DeFi Asset</a> 
<a href="https://www.cryptointelligence.co.uk/bitcoins-reduced-volatility-sparks-anticipation-for-exciting-long-term-bull-signal/" rel="noopener noreferrer nofollow">Bitcoin’s Reduced Volatility Sparks Anticipation for Exciting Long-Term Bull Signal</a> 
<a href="https://www.cryptointelligence.co.uk/bnb-smart-chain-bsc-hit-by-copycat-attacks/" rel="noopener noreferrer nofollow">BNB Smart Chain (BSC) Hit by Copycat Attacks</a>

Binance CEO CZ Unveils Plan to Launch Smaller Algorithmic Stablecoins

Crypto Intelligence

Other articles published on Aug 3, 2023

Ride the Meme Revolution: Shiba Memu Takes the Crown as the Best New Meme Coin

Vodafone DAB and Aventus Unite for Web3 Adoption in Economy of Things

Futureverse Co-Founders Launch $50M Born Ready Venture Fund and Studio

Upbit Beats Coinbase and OKX in Monthly Spot Trading Volume!

eToro Under Legal Siege in Australia, Here's Reason

Shiba Inu Price Prediction 2023: Can These Newly Emerging Meme Coins Beat SHIB?

Join our free newsletter for daily crypto updates!