Binance has confirmed it will soon issue its own stablecoins. With just two years in the running, Binance has become a globally recognized cryptocurrency exchange and even considered since early 2018 as the biggest cryptocurrency exchange in the world in terms of trading volume. Their platform provides trading in more than 100 cryptocurrencies.
Bloomberg had an over the phone interview with Wei Zhou Binance’s chief financial officer. Zhou affirmed that the first stablecoin will be launched on the platform “in a matter of weeks to a month or two.” The token will be called Binance GBP, which will be fully backed by reserves of British pounds, according to him.
Apparently, the exchange has other coins in the works tied to other fiat currencies that will follow the first. Zhou said Binance will work with partners that want to issue their own stablecoins as well via Binance Chain, the exchange’s native blockchain.
There is a continuously growing number of competitor companies in the market-leading but controversial stablecoin tether and this move by binance will be a contributor.
In actual fact, it has been revealed recently that Tether is not fully backed by U.S. dollar holdings as was previously claimed. it was Issued by an entity linked to crypto exchange Bitfinex. In other news, Tether Ltd is involved in a legal brawl with the New York attorney general over a secretive loan to its sister firm. Binance’s stablecoin offerings could see some adoption in the light of such issues that will most likely to affect investor confidence. Some are saying Binance’s new stable coin poses a threat to Tether, this is most likely true with wavering investor confidence and Zhou’s confirmation to Bloomberg that the tokens will be 100 percent fiat backed and will offer more transparency. Another thing that comes to mind to back up the stellar reputation of Binance was the unfortunate hack incident over a month ago that lost them over $40million. Zhou handled this with brisk, transparent and exemplary measures and the exchange dusted off the impact in no time to move forward.
Zhou said on the matter of introducing a U.S. dollar-backed stablecoin, that Binance does not have any plans on that yet.
Credits- Benedict AlibasaJOIN OUR COMMUNITY