Changpeng Zhao: The current wave of regulatory enforcement actions in the United States may lead to the resurgence of algorithmic stablecoins

PANews reported on February 15 that according to Bloomberg, Binance founder Zhao Changpeng said on Twitter Space that after the US regulatory crackdown, the cryptocurrency industry may stay away from stablecoins pegged to the US dollar and even re-examine algorithmic stablecoins. The current pressure on stablecoins is considerable, which will shrink the US dollar stablecoin market, so the industry is exploring other options. "We will see more stablecoins based on the euro, yen, and Singapore dollar."

Zhao Changpeng said that the regulatory crackdown around stablecoins was partly triggered by the collapse of the Terra Luna algorithmic stablecoin in May last year. "Based on our experience, regulatory actions take a fairly long time. One side effect of the current wave of enforcement actions may be the comeback of algorithmic stablecoins."

Zhao Changpeng pointed out that BUSD was not his or his team’s idea, but originated from Paxos, and Binance is not a stablecoin issuer. “BUSD has never been a good business for us.”