About a week ago, it became apparent Binance was in the process of issuing its own stablecoin. While not too much was known about the project at that time, it seems a lot of things have changed in a short amount of time. Some of the initial remarks are no longer valid, albeit there is still a lot of information missing at this time.
When Binance first announced its stablecoin plan, it became apparent the company was looking into an asset pegged to the British Pound Sterling. A bit of an unusual decision, primarily because it seems GBP trading pairs are not all that popular in the cryptocurrency industry. That doesn’t mean there won’t be a demand for such a stablecoin, however, as it seems this market should never be overlooked.
A week later, it quickly became apparent the project actually has a name. It will go by the name of Binance GBP and seemingly only trade on the exchange itself during the initial stages. This is very different from Binance Coin, as that value will not correlate to this new stablecoin in any way. However, this new asset may bring some more positive attention to BNB as a whole, despite it already soaring well past its previous all-time high earlier this year. A very remarkable turn of events regardless of how one wants to look at things.
While the initial report indicated Binance would not be looking at issuing a similar stablecoin pegged to the Euro, it seems that plan has changed as well. Changpeng Zhou confirmed there are still plans on the table to explore similar assets pegged to the Eur and the Yen in the near future. When those projects would be explored exactly, has to be determined at this stage.
Another interesting note is how this popular exchange could easily rival Tether is they were to issue a USDT competitor. For some reason, that will not be the case, even though more competition could be a good thing for the industry. For now, there are no USD-oriented plans, albeit the company never specified why that is the case. All of the regulatory red tape associated with exploring that option may have something to do with that.
At first, it may seem as if Binance’s plan is to manage these stablecons themselves. That will not necessarily be the case, as the company will expand this functionality to other parties as well. This will allow partners to create stablecoins on the Binance Chain blockchain in the future. That can create a lot of interesting future potential, assuming there is any genuine interest in this particular project.
According to Bloomberg, it seems the first external partner has already issued their own stablecoin. The company known as Stably decided to create USDS.B on Binance’s corporate blockchain. While the company initially launched on Ethereum, they have been looking to expand upon its offerings and explore additional options. It is also the first pegged currency to be launched on Binance Chain. In that regard, it will serve as a viable test for other interested parties.
As interesting as Binance’s plans may sound, it also creates somewhat of a problem in the cryptocurrency industry. As the company dips its toes in many different pools in quick succession, it also introduces a degree of centralization. It is the most popular exchange, there is an IEO platform, and native stablecoins will be introduced fairly soon. All of these developments seemingly remove the need to rely on any other service provider in this industry today.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.