We are witnessing interesting developments in the field of cryptocurrencies and blockchain technology and the latest one to catch our attention is the news report coming from the top cryptocurrency exchange in the world, the Binance. The exchange is going to launch its own stablecoins, which is sure to take the fight in the crypto market to a different level. The confirmation has come from the chief financial officer of the exchange, Wei Zhou who has confirmed the launch of a stable coin within a month or two to the media house Bloomberg.
Revealing some important details of the stablecoin, Wei Zhou said that the new offering will be called “Binance GBP” and will be pegged to fiat currency – British pound. The top executive also confirmed that at a later point in time, the exchange has planned to launch some more stablecoins which will be tied to some other fiat currencies. Expanding the scope of the launch of the coins, the exchange opined that it would actively participate and work with its partners who are willing to launch their own cryptocurrency on its blockchain technology which is known by the name of “Binance Chain.”
According to the experts and analysts in the field of cryptocurrencies, this impending launch is going to spur the competition, especially in the field of stablecoins, which are continuously rising in terms of their importance and popularity. The primary reason behind their growing acceptance is the fact that unlike cryptocurrencies, stablecoins are immune to fluctuations as their value is pegged to fiat currencies. This ensures their value will remain constant without having any kind of threat of a sudden decrease in their worth. That said, even the stablecoins have got their own share of controversies and especially the incident of the tether – which claims to be fully backed by fiat currency US dollar – currently being embroiled in a legal dispute with the attorney general of US in the case of secretly helping its sister organization is fresh in the minds of investors. To allay these fears, Binance is promising greater transparency to investors and hope that adoption of its stablecoin will touch the desirable targets. The chief executive also made it very clear that for now, the exchange is not looking to launch any stablecoin backed by the US dollar in the near future.
Just so you know, Facebook is also preparing very hard and expected to come up with its own stablecoin project which has been codenamed “Project Libra” soon. It will be interesting to witness how the competition is the stablecoin segment will evolve in the future and more importantly, how it is going to have an impact on the cryptocurrency market which is still struggling with continuous upheaval and turbulence. Compared to the past year, 2019 has proved to be a good year for cryptocurrencies so far; however, there is no abatement in the turbulence and tumultuous that the market is experiencing even this year.