Binance Founder CZ Responds to SEC Investigation on Paxos and Coin Support for BUSD

02/13/2023 09:51 • Crypto & Markets • 272 views

On February 13, CZ, the founder of Binance, responded to the recent incident of “SEC investigating the stable currency issuer Paxos” and said that in the foreseeable future, Coin will continue to support BUSD. We do foresee that users will migrate to other stable currencies over time. We will also make corresponding product adjustments. For example, give up using BUSD as the main trading currency, and so on.

CZ: BUSD will no longer be used as the main transaction currency in the future

Interpretation of the news:

On February 13, the founder of Binance, CZ, responded to the recent incident of the US Securities and Exchange Commission (SEC) investigating the stable currency issuer Paxos, and gave his vision for how Binance Coin (Coin) will continue to support BUSD in the foreseeable future while also making necessary adjustments to cater to user preference.

Binance, one of the largest cryptocurrency exchanges in the world, has been a major supporter of BUSD, which is a stablecoin backed by the US dollar and developed by Paxos. CZ acknowledged the potential impact of the SEC investigation on BUSD and its users, saying, “we do foresee that users will migrate to other stable currencies over time,” but emphasized that Coin will still support BUSD.

To prepare for the potential shift in user preference, Binance will make corresponding product adjustments as needed. For example, the exchange may give up using BUSD as the main trading currency in favor of other stable currencies that users may prefer in the future. CZ did not elaborate on the specific changes Binance will make, but he assured users that the exchange will adapt accordingly to ensure a seamless transition.

The SEC’s investigation on Paxos has raised concerns among cryptocurrency investors and users about the stability and reliability of stablecoins. Stablecoins are digital currencies designed to maintain a stable value against a certain backing asset, such as fiat money or other cryptocurrencies. BUSD, for example, is pegged to the US dollar at a 1:1 ratio, which means that one BUSD is worth one US dollar.

However, the SEC’s recent probe on Paxos has sparked worries about the potential risks of stablecoins, particularly those that claim to be backed by actual assets. The investigation could lead to new regulations and compliance requirements for stablecoin issuers, which may impact the overall adoption and usage of stablecoins in the cryptocurrency market.

In summary, CZ’s response to the SEC investigation on Paxos and Coin’s support for BUSD indicates that Binance is committed to adapting to changes in user preference and market conditions. While the future of stablecoins remains uncertain, Binance remains confident in its ability to provide a secure and reliable trading platform for its users.

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Binance Founder CZ Responds to SEC Investigation on Paxos and Coin Support for BUSD

CZ: BUSD will no longer be used as the main transaction currency in the future

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