Last week, the financial regulator in New York ordered to halt the issuance on Binance of the stablecoin Binance USD (BUSD). A blow for the crypto exchange, which must run by next February 21. In the meantime, Binance is exploring another possibility, which for some analysts is unlikely to succeed.
A parade to the decision of the New York regulator?
The crypto exchange Binance seems to be looking for an alternative to the suspension, a few days ago, of the issuance of its stablecoin BUSD. According to recent statements by Patrick Hillmann, Binance’s Chief Strategy Officer, the matter is on the table. The company is reportedly exploring ways to implement a new stablecoin, which unlike BUSD will not be backed by the dollar.
According to the manager, the company has received several attractive offers for this purpose. Proposals for collaboration, from public and private institutions, interested in the idea of a stablecoin not linked to the American currency.
“There are very interesting opportunities, especially in Europe and the Middle East”, said Hillmann, in an interview he gave to the American business magazine Forbes. Although the concept is basically interesting, its implementation, in the current context of the crypto industry, remains unlikely.
The lack of regulation of the crypto market, a barrier?
It must be said that in itself, the idea of launching a stablecoin not backed by the dollar is not really new. Indeed, Changpeng Zhao, the CEO of Binance, had already revealed in a post published on his Twitter account, that such a project was under study. Except that the realization of this ambition is not guaranteed.
It is even likely to face obstacles such as the lack of regulation. This is particularly what Kevin Zhang, co-founder of the crypto company DFX Finance, thinks.
“One of the many reasons it has taken so long for non-dollar stablecoins to catch on is regulation,” did he declare. He added : “Stablecoin issuers are looking for ways to get properly regulated without making lots of assumptions and spending crazy amounts of money, just to get lawyers to give their opinion.” We can imagine that the story will not be the same once the regulatory efforts of the crypto industry have taken hold.
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