Coinlive reporting at Singapore FinTech Festival 2022 in Singapore. Binance’s founder and CEO Changpeng Zhao, and Paxos/BUSD’s co-founder Richmond Teo, are present at the session titled “Stablecoins: The Future that is your Money”.
Richmond introduces the Binance-owned stablecoin, Binance USD (BUSD), which has customer protection built into it, has a fully backed reserve, is transparent, and most importantly, is regulated by the New York State Department of Financial Services.
CZ explains that stablecoins are for transaction and payment while other innovative coins are for community development, ecosystem development, and other use cases. He also thinks that more stablecoins are needed, for example, an SGD stablecoin. With regards to the controversy of stablecoins’ auto conversion into BSUD that spurred recently, CZ explains that the motives behind are from the user’s perspective. The main point of auto conversion is to combine liquidity.
In terms of regulations in Singapore, he asks if Singapore should re-evaluate the regulations. Richmond expresses that education is very important to retailers and Binance offers a lot of educational materials to the public. CZ recommends that retailers who have just started, should not be putting too much exposure into crypto, probably around 0.1% of personal net worth.
During the QNA session, one of the audience asks about the future outlook of stablecoins, native coins, and CBDC. Richmond and CZ believe all of them will coexist for quite a while though the fundamentals of these three camps are totally different.