Speculation Abounds: Will Binance Launch Its Own Stablecoin?
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Rumors are beginning to circulate suggesting that Binance, a major crypto exchange, will launch its own dollar-pegged stablecoin. The inaugural release of Binance’s new podcast has spurred plenty of speculation, and although nothing has been confirmed yet, many people are beginning to ask: will Binance release a stablecoin?
Podcast Provokes Speculation
On Tuesday, Binance released a brand new podcast. In the first-ever episode, two prominent Binance personnel discussed stablecoins from JP Morgan, IBM, and Facebook. In a less noteworthy episode, this might be considered a normal topic, but many people now believe that Binance is more interested in stablecoins than it is letting on.
In the premiere episode of the @Binance Podcast – “What are Stablecoins & why are @jpmorgan, @facebook & @IBM working on it?” #Binance CFO @weizhouBinance discusses #stablecoins & their impact on finance with Head of OTC @LeslieisHODLing.https://t.co/57DgM6LlqO
— Binance Info (@Binance_Info) May 1, 2019
Zhao on Stablecoins
Binance hasn’t confirmed that it is working on a stablecoin. However, Binance CEO Changpeng Zhao has made some cryptic and suggestive comments. In response to speculation on Twitter, Zhao answered “be careful what you wish for.” And when another user asked about “Binance Stable Coin,” Zhao replied, “Good name, may steal it for later.”
This would also be an opportune time for Binance to build anticipation, as Tether—the largest stablecoin in existence—is in crisis. Although Binance is not responsible for Tether’s failings, it could build trust by handling Tether’s crisis gracefully. Indeed, Zhao has recently taken steps to disclose a regular Tether rotation and reassure users that funds are safe.
Zhao also seems to see other stablecoins as healthy competition. Recently, he has asked commenters to think critically about bank-issued stablecoins. He has also acknowledged that even controversial stablecoins will contribute to crypto adoption. These facts reveal no inside information, but they are additional signs of Binance’s interest in stablecoins.
Will It Happen?
All of the above is hardly conclusive evidence that Binance plans to introduce its own stablecoin. However, Binance undoubtedly has the capacity to create one: by launching Binance Coin in 2017, it has proven that it can create a very successful cryptocurrency. Binance also has Binance Chain at its disposal, which can be used to power new coins.
Furthermore, Binance’s standing as one of the largest crypto exchanges means that it is in an extremely good position to create a stablecoin. In fact, it would not be the first trading platform to do so: Circle and Gemini have both created their own stablecoins—USDC and GUSD respectively. Binance would be in good company if it does decide to join in.
At the same time, it’s not clear that Binance really needs its own stablecoin. Binance currently lists several different stablecoins on its exchange, and it hasn’t hinted at any unique use cases for an in-house stablecoin. It is entirely possible that Binance really is just interested in the stablecoin trend in a general sense—at least for now.
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