Binance CEO, Changpeng Zhao, confirms that the exchange is in the testing phase of a GBP pegged stablecoin. Binance is using its native blockchain, Binance chain, to test the British pound (GBP) stablecoin with the ticker $BGBP.
Binance has been under fire since “the $40 million hack” on May 7th. The users of the platform were outraged when Zhao posted his intent about rolling back the transactions and later apologized of using the words like ‘reorg’.
Why is Binance eyeing Stablecoins?
The stablecoin market has proven to be quite lucrative for the exchanges and it helps them bypass the fiat trading regulations and protects them against the price volatility of cryptocurrencies. Binance has been quite active in the stablecoin space since November 2018 when Binance added a quote currency, Paxos Standard Token and introduced a new stablecoin market.
The USDT Market (USDT) of Binance was renamed to Stablecoin Market which supports multiple cryptocurrency trading pairs where quote currency is the stablecoin. Multiple major exchanges are currently riding the stablecoin market wave.
Binance strongly believes that by offering currency pegged by stablecoins it can help eliminate the issues and confusions around the conversion rates. According to Binance, the conversion fees of US dollars to stablecoins are minimum that could lead to mainstream adoption of the stablecoins as opposed to traditional finance exchanges that levy heavy conversion charges.