Binance Co-Founder CZ, short for Changpeng Zhao, has confirmed that he is trying to make advancements for the stablecoin sector. Stablecoins hold a significant share of the crypto market’s global share. Any further advancement is likely to re-establish the stablecoin sector as a quality alternative for crypto enthusiasts.
However, Brazil has underlined a major challenge that CZ may have to work around during his endeavour.
CZ on Stablecoins Advancement
Changepeng CZ Zhao published a post, informing the community that he was working with more countries on their stablecoins. Calling them native stablecoins, Binance Co-Founder highlighted that his objective is to assist nations with the launch, as every currency should be represented on-chain.
CZ earlier stated being in talks with probably a dozen governments to tokenize their assets. He predicted that cryptos are likely to become a native payment method if the AI boom surges. One major benefit of tokenizing assets, per reports, is that governments would be able to raise funds conveniently. All they will have to do is sell blockchain-based fractional ownerships.
Stablecoin as a Sector
There is a lot of attention on stablecoins because the segment commands a market cap of over $312 billion out of the total market cap of more than $2.28 trillion. As of now, its market cap is $312,978,753,452, to be precise, with a trading volume of over $300 billion, up by 69.35%.
Tether’s USDT is leading the list of stablecoins in terms of market cap, followed by USDC and USDe, in the same sequence. USD1 continues to make headlines, given it has reached the 5th position on the list with a market cap of over $5 billion. A stablecoin by World Liberty Financial, USD1, is now projected to surpass DAI by the end of 2026.
Challenge for Binance Co-Founder
That said, there is a challenge for CZ, which has been underlined by Brazil via Bill 4.308/2024. Reportedly, the South American country is taking stern steps to ban algorithmic stablecoins like USDe and Frax. If passed, the legislation would require all stablecoins to be backed by reserve assets and attract a penalty for non-compliance.
This is significant because stablecoins make up around 90% of its crypto volumes. Also, it brings out an aspect that countries or crypto enthusiasts often overlook in a bid to advance stablecoins.
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