3 - 5 minute read
Stablecoins
Stablecoins have become increasingly popular in the crypto industry due to their ability to maintain a stable value. In an interview with CoinDesk Japan, Takeshi Chino, the general manager of Binance Japan, described stablecoins as the “glue” between the real economy and the blockchain ecosystem. Binance’s recent acquisition of regulated crypto exchange Sakura Exchange BitCoin has positioned the exchange to re-enter the Japanese market, which has recently seen withdrawals from rivals Coinbase and Kraken.
Chino highlighted the benefits of stablecoins, which are pegged to the value of traditional assets such as the U.S. dollar, to provide stability and reduce the negative effects of crypto price volatility. He argued that while volatility may create short-term profit opportunities, it does not stimulate broader demand for cryptoassets. In contrast, stablecoins serve as a bridge between the real economy, the blockchain economy, and the Binance ecosystem, according to Chino. He believes that when transactions are conducted stably, price fluctuations become noise.
Chino also discussed Binance’s vision for “economic freedom” through crypto and blockchain technology, which he believes supersedes the exchange business model and current market conditions. He acknowledged that the traditional model of a crypto exchange business has been hampered by crypto winter, which has led to lower valuations and trading volume, resulting in diminished revenue from fees. However, he emphasized that Binance’s ecosystem has many facets, including providing various services from a different angle to finance and offering intellectual property contents in the form of Web3.
Binance’s move back into Japan, two years after receiving a warning from the country’s Financial Services Agency that it was operating there without permission, poses a challenge in terms of gaining regulatory acceptance. Chino emphasized that gaining trust is crucial in ensuring regulatory acceptance, and this requires ensuring understanding of how Binance’s products work. He expressed confidence in Binance’s product and technology but acknowledged that the company and its activities are still a long way off in terms of being properly understood.
The Bottom Line
Stablecoins have gained popularity in the crypto industry due to their ability to maintain a stable value and provide stability in the face of crypto price volatility. Binance’s recent acquisition of regulated crypto exchange Sakura Exchange BitCoin has positioned the exchange to re-enter the Japanese market, which has recently seen withdrawals from rivals Coinbase and Kraken. Takeshi Chino, the general manager of Binance Japan, believes that stablecoins serve as the bridge between the real economy, the blockchain economy, and the Binance ecosystem. He emphasized Binance’s vision for “economic freedom” through crypto and blockchain technology, which supersedes the exchange business model and current market conditions. However, gaining regulatory acceptance in Japan poses a challenge, and Chino emphasized the importance of gaining trust by ensuring understanding of how Binance’s products work.
