Changpeng Zhao (CZ), the founder of Binance, Chia on the X platform, stating that he is working with various countries to promote the issuance of stablecoins pegged to each country's fiat currency. In the post, CZ emphasized the view: "Every fiat currency should have a representative on the blockchain."
Chia to CZ, issuing a local currency stablecoin will help:
- Bringing fiat currency onto the blockchain to facilitate cross-border payments and money transfers.
- Reduce reliance on USD Peg stablecoins.
- Facilitating the development of multi-currency DeFi and Web3 ecosystems.
This approach reflects a vision of blockchain as a neutral financial infrastructure where all national currencies can be digitized and circulated on-chain.
Cooperation with the government and the legal challenges.
Binance's direct collaboration with countries to issue stablecoins demonstrates its increasingly clear "regulation-first" approach following regulatory changes in the industry. Local currency stablecoins, if issued under the supervision of local regulators, could:
- Increase compliance and transparency.
- Supporting governments in digitizing payment systems.
- Expanding access to finance for people through blockchain infrastructure.
The view that "every fiat currency should have on-chain representation" reflects a long-term vision of multipolar finance, in which:
- Blockchain is becoming the common infrastructure for global currency.
- Stablecoins are not limited to USD, but extend to many other national currencies.
- The role of crypto exchanges and companies is shifting towards becoming technology partners for governments.
