Binance is expanding its stablecoin base

     Recently, CZ, the CEO of Binance, talked about the advantages of stablecoins and decided to grow its base in Binance; CZ's diplomatic experience is evident in this decision.

Binance Needs to Have the Largest Stablecoin Reserves

     Stablecoins reduce the possibility of loss in a bear market, so they are in high demand. Binance is the largest crypto exchange platform, so sufficient stablecoin liquidity is a natural requirement for it. As Binance continues to expand, it is imperative that its stablecoin reserves grow as well. Therefore, CZ is building strategic alliances with various stablecoin makers.

Diplomatic Effort to Engage Stablecoin Developers

     Stablecoins cannot be created out of thin air; they are based on a reserve of fiat. Binance holds huge reserves of BUSD, USDC, TUSD, USDC, and DAI. Other small and large stablecoin makers are also offering incentives for their investors to invest in Binance, such as the recent acceptance of First Digital's stablecoin FDUSD into the Launchpool for airdrops.

CZ's Diplomatic Experience will Come in Handy

     CZ uses diplomatic rapport according to the circumstances. Some time ago, when Binance delisted Circle Pay's stablecoin USDC, Circle conspired against Paxos Global, the creator of Binance's main stablecoin, BUSD, to stop mining new tokens. CZ then made Archblock's TUSD the new main stablecoin without removing BUSD reserves and made peace with Circle by re-listing USDC instead of taking revenge.

Brought to you by Yugocean, originally posted here.