Changpeng Zhao: Banks Represent A Risk To Fiat-backed Stablecoins
Binance’s CEO Changpeng Zhao has some doubts about stablecoins backed by fiat money. Binance CEO Changpeng Zhao tweeted on March 12 that banks are a concern for fiat-backed stablecoins. “We need stablecoins backed by cryptocurrencies,” other Twitter users said. “Do Kwon truly had the right concept, but failed badly in implementation,” Changpeng Zhao remarked.
Changpeng Zhao, CEO of Binance, a major cryptocurrency exchange, has raised reservations about fiat-backed stablecoins. Zhao argues that banks may represent a risk to stablecoins, which are tethered to fiat currencies like the US dollar or euro. He claims that banks can freeze accounts, which might lead to liquidity concerns for stablecoin producers. Moreover, Zhao has proposed that cryptocurrency exchanges be more aggressive in helping to protect stablecoins from possible threats. Zhao’s remarks come at a time when stablecoins are gaining popularity in the cryptocurrency industry.
Source
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