Binance CEO Changpeng Zhao talked about stablecoins like BUSD. There is huge regulatory pressure on these cryptocurrencies, which are usually based on the US dollar. Zhao also shared his comments on what could happen if it is outlawed and banned by US regulators. He generally shrugged off such “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. That’s because in a market downturn, he said, 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 that according to him, “Paxos has done a good 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 ask the same question about USDC,” he said. He also used the following expressions:
What if USDC gets banned tomorrow? We don’t know. It will definitely be negative for the industry. Crypto will likely go up because people will buy crypto in a hurry because they have to get rid of USDC, but I can’t answer hypothetical situations of what will happen tomorrow. The moon may disappear tomorrow. What will you do?
It all started with FTX
As we reported on Kriptokoin.com, Binance announced that it would sell FTT, the native token of the currently bankrupt crypto exchange FTX. He explained that the reason behind this was an “early exit strategy”. So he hinted that he thought there was something wrong with the 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, FTX’s relative size, transaction volumes, fees pointed out. He also said that the crypto exchange led by Sam Bankman-Fried always had a “hunch” in his mind about the big spending. Zhao used the following statements:
Miami stadium (FTX Arena), acquisitions, investments in crypto projects. I’ve always wondered where they got all that money from. We also knew how much money they were raising. 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 thinks they are defrauding users with billions of dollars worth. But he explained that he thought to himself that even FTX doesn’t have that much money, according to their wallet addresses. Zhao used the following statements:
So, I did some mental math and something really didn’t quite fit. But I didn’t look at their 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 collusion where they took loans from venture capitalists. However, I didn’t know for sure.
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