Binance CZ: Stablecoin Regulation Could Fuel Mass Adoption Of Digital Currencies
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On February 1st, Binance CEO Changpeng Zhao (CZ) tweeted that stablecoin regulation could potentially accelerate its growth. CZ believes that these regulations will increase the adoption of stablecoins for cross-border payments, aid disbursements, and inflation hedging.
CZ says stablecoin regulation will boost adoption
— $uicidalBanker (@uicidalbanker) February 2, 2023
It should be noted that the ability of stablecoins to control inflation has led to strong regulatory attention on algorithmic dollar-pegged digital assets, particularly in the wake of the catastrophic collapse of Terra’s algorithmic stablecoin UST in 2022. Since Terra’s algorithmic stablecoin, UST, collapsed last year, stablecoins have been under increased scrutiny.
Stablecoins are in strong regulatory focus at the moment.
We look forward to the proposals by @FinStbBoard and @MAS_sg.
Read our response to the FSB consultation here: https://t.co/E4KWC0BvOG
— CZ 🔶 Binance (@cz_binance) February 1, 2023
CZ also stated that regulating stablecoins would “give issuers, users, and service providers the much-needed stability” and that stablecoins are currently under a lot of regulatory scrutinies.
Changpeng Zhao Impressed By Hong Kong’s Risk-based Approach
The CEO of Binance has been impressed by the risk-based strategy employed by the Hong Kong government to regulate stablecoin wallets, issuance, stabilization, and governance. He continued by saying he anticipates that the Financial Stability Board (FSB) and the Monetary Authority of Singapore’s (MAS) suggestions on stablecoins will be approved at some point.
.@binance CZ says #stablecoin regulation would boost adoption@cz_binance said on Feb.1 that stablecoins regulation could help accelerate its adoption and commended Hong Kong's "decided approach."
via @hardeyjumoh https://t.co/KHBRH221e4
— CryptoSlate (@CryptoSlate) February 2, 2023
Changpeng Zhao; Stablecoin Developments in Several Nations
On January 31, 2023, the Hong Kong Monetary Authority (HKMA) announced the guiding principle for a stablecoin and emphasized all the regulatory plans necessary for issuers to obtain a license in Hong Kong.
On January 19, 2023, the Central Bank of Spain approved a full-scale, six- to twelve-month experiment with a stablecoin (EURM) pegged to the euro. The aim of the trial is to assess whether Spain’s economy can support it.
On January 23, Red Date Technology, which is responsible for the technology behind China’s government-backed Blockchain-based Service Network (BSN), showcased a new project that makes it easy to link stablecoins to digital currencies from central banks.
Additionally, the National Bank of Australia announced on January 19th that it will launch a stablecoin pegged to the Australian dollar by the middle of 2023. The country hopes that its current approach to stablecoin will make commerce, trading, and obtaining carbon credits easier both within and outside the country.