Binance is Working on Small-Scale Algo Stablecoins

As per the recent publications, Changpeng Zhao (CZ), the chief executive officer of Binance revealed the forthcoming introduction of a smaller algorithmic stablecoin to the market during the recent Ask-Me-Anything (AMA) session. 

Binance is Working on Algo Stablecoins

While addressing the gathering on July 31, the CEO CZ discussed challenges in connection with huge stablecoins such as Tether and Binance USD, stating that even though Tether represents the most prominent stablecoin by market size, he was still wary of the asset owing to its lack of transparency.

Concerns Surrounding USDT and BUSD

He said: “I personally have not seen any audit reports of USDT. I don’t think most people I spoke to have not seen that either. So it’s kind of a black box because we just don’t know.”

According to CoinMarketCap data from June, the dollar-pegged Binance USD (BUSD) stablecoin is currently ranked fourth overall in terms of market capitalization among other stablecoins. However, he emphasized how the government agency proceeded to take down BUSD despite the fact that it had been thoroughly audited. He noted: “We should just work with as many stablecoins as possible. We shouldn’t have a single bet.”

Binance is Broadening Stablecoin Partnerships

As a result of regulatory and transparency concerns, CZ announced that Binance is developing algorithmic stablecoins and broadening its stablecoin partnerships so as to minimize potential risk. 

He states: “We actually have a small team working on algo stablecoins in different places that are not high scale, but they are very relevant locally in those places.”

Intentions to Debut First Digital USD in Hong Kong

Furthermore, the CEO highlighted Binance’s ambitions to launch the First Digital USD in Hong Kong, and also to introduce new stablecoin in Europe. The FDUSD stablecoin was added to Binance on July 26 by the company mentioned.

Overtly expressed, the company has taken a number of regulatory strikes in recent days. The main upset occurred when the US Securities and Exchange Commission launched a complaint against Binance, CZ, and other associated firms on June 5.