Binance, the worlds biggest crypto exchange is testing a British pound stablecoin

One of the world’s largest cryptocurrency exchanges, Binance is testing a British pound-backed stablecoin upon its native blockchain, Binance Chain.

As per a statement from Changpeng Zhao, CEO of Binance, the forthcoming stablecoin is currently in a testing phase.

The news broke after a Twitter user posted a screenshot of the Binance platform revealing a new listing of a new British pound-pegged stablecoin under the name BGBP on the firm’s native Binance Chain blockchain.

Zhao responded to the tweet by posting a tweet of his own stating:

“This is in testing phase still, only £200 minted so far.  Slowly, but surely…”

Upon being asked about a possible euro-backed stablecoin, Zhao responded by saying that that it would be a bit more tricky as the “euro has a negative interest rate”.

Other Stablecoins:

On the subject of stablecoins, Tether still seems to be dominating the market with more than 78% of $4 billion worth of dollar-pegged tokes in circulation to date.  Currently, the only other UK pound-backed stablecoin on the market is the TrueGBP project, which is also in the testing phase with just over £1 million issued in ERC-20 tokens on the Ethereum blockchain.

Binance currently supports several stablecoins including TUSD, USDC, USDS, USDT, and PAX.

Limited Supply:

As is the case with most new stablecoins, the overall supply of the BGBP stablecoin will be limited during the early stages of development.  It is evident to any crypto expert or enthusiast that these are just “test coins” not actually backed by fiat currency. Yet. This could change in the near future, but it all depends on the projects success and demand for the stablecoin.

At least Binance and its CEO are willing to expand upon stablecoin infrastructure, and this excites us as we look forward to seeing how the exchange will handle all the technicalities of launching new stablecoins in the future.

Source Link