• Binance CEO Changpeng Zhao addressed reports that Circle had snitched to New York regulators about Paxos and BUSD.
• CZ believes there is no substance to the reports and welcomed more stablecoin alternatives.
• He added that transparency and communication with consumers are key for avoiding another TerraUSD (UST).
CZ Addresses Reports of Circle Telling Regulators About PAXOS/BUSD
Binance CEO Changpeng Zhao recently addressed rumors about Jeremy Allaire, founder of Circle, secretly telling New York regulators to look into Paxos and BUSD’s stablecoin in a wide-ranging Twitter Spaces AMA on Feb. 14. CZ believes there is no substance to these reports and welcomed more stablecoin alternatives into the marketplace.
Stablecoins Necessary For Most People’s Costs
CZ noted that even though more competition in the marketplace is encouraged, stablecoins are still necessary because most people’s costs are still in fiat currency. He suggested that the industry may move away from USD-backed stablecoins to non-US dollar based ones or algorithmic ones, but added that if this happens the economics should be done in a transparent way so people don’t lose money due to peg losses.
Transparency & Communication Key To Avoiding Another TerraUSDT
In order to avoid another incident like what happened with TerraUSD (UST), CZ stressed the importance of transparency and communication with consumers as well as finding collective solutions within the industry.
Paxos Halting Minting Of Binance StableCoin (BUSD)
Recent news has surrounded Paxos‘ halting of minting of Binance’s stablecoin (BUSD). CZ welcomed this alternative and supported more diffusion and competition in the marketplace, believing it will ultimately benefit consumers by providing them with more options when it comes to their finances.
CZ Believes There Is No Substance To Reports Of Circle Snitching To Regulators
When asked about his thoughts on recent reports that Jeremy Allaire had told New York regulators about Paxos & BUSD, CZ said he doesn’t take such articles too seriously as he has spoken with Allaire on multiple conference calls himself. He also noted his support for continued work between industry players rather than accusations being thrown around.