Binance’s New Stablecoin Will Compete Against Tether: Wei Zhou

Binance’s new stablecoin which will be launched in the upcoming months will likely compete against Tether and will be its biggest threat. More about their plans we find out in the latest cryptocurrency news below.

Wei Zhou, the chief financial officer at Binance believes that the exchange is the most widely used asset trading platform on the market and will issue a stabelcoin that will be a direct competitor to Tether. Zhou stated:

 “Our business decisions are made with our users in mind. The goal for issuing a GBP stablecoin is to provide users with more options and more choice; to diversify the stablecoin assets for the ecosystem. BGBP will be issued on the Binance Chain, which offers an easy and fast way to tokenize.”

He also pointed out that the exchange has plans to launch the stablecoin in a matter of months. Although there were some times where the Tether stabelcoin showed dominance on the market but shortly after it declined in December 2018 due to the strong demand from Asian users. Since then, Tether has been able to yet again secure its dominance over the entire stabelcoin market. According to a report, the on-chain transaction volume of the stablecoin achieved a new all-time high in 2019. The research company Diar noted:

“On-chain data shows Tether movements hitting a new all-time-high for 2Q19 with one month left on the calendar for the period. What is most striking, however, is the volume coming in and out of Chinese exchanges dwarfs western and global trading venues and accounts for more than half of the total transaction value of known parties.’’

The majority of the volume from Tether transactions in the Q2 of 2019 was driven by China which shows a huge interest and growth in the user base of the stablecoin. However, Binance has a major network effect on the global crypto exchange market and has an international user base which means that Binance’s new stablecoin could surpass the popularity of Tether.

Binance doesn’t have the intention to directly compete with Tether but will be eyeing on other reserve currencies like the euro. As the best cryptocurrency news sites reported, Zhou noted:

 “From the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well.’’