The cryptocurrency industry is expected to reduce its dependence on United States dollar-based stablecoins and start using euro, yen, or Singapore dollar-based stablecoins instead, according to Binance CEO Changpeng Zhao.
In a Twitter Spaces event, Zhao stated that although it “makes sense” to use gold as a standard of value, most people’s costs are still in fiat currencies, making the dollar the most widely used.
However, the US government’s recent regulatory measures against US dollar stablecoins may prompt the global crypto industry to adopt other currencies, such as the euro, yen, and Singapore dollar.
Zhao also suggested that algorithmic stablecoins could play a larger role in the crypto ecosystem in the future, but they come with risks that fiat-backed stablecoins do not have.
The Binance CEO emphasized the need for transparency and disclosure of reserves to ensure users can make informed decisions on which stablecoins to hold or use.