One of world’s largest global cryptocurrency exchange in terms of trading volume, Binance’s CEO Changpeng Zhao compared between American banking giant J.P.Morgan’s Stable coin and the Social media giant Facebook’s cryptocurrency ‘Facebook coin’. CZ tweeted on his official Twitter handle recently.
Binance founder and CEO CZ tweeted, “Unpopular opinion: JPM/FB coins. In a decentralized world, anyone can do as they please (within limits, so long as they don't hurt others). The more people adopt #crypto, the better. Adoption is #adoption. Welcome! How well will they do? Well, let's wait and see.”
J.P Morgan has announced last month that it has created its own stablecoin. The announcement has equally excited both the banking and blockchain community. The stable coin targets to find a solution for two problems which is prevailing in the current financial market. First one is volatility involved in holding money in cryptocurrency and the second one is the expensive and inefficient process of settlement.
The stablecoin clears the wall between the aspects of settlement and volatility management. It provides digital cash that can be redeemed at stable rate.
In December 2018, Facebook announced a WhatsApp stablecoin integration mainly focusing Indian population. The impact of this innovative technology is huge because the social messenger platform has over 200 million users in a market with over $69 billion in remittances.
A twitterati replied to CZ, “This is an inevitability and proves that a group of autonomous individuals, who efficiently built up a marketplace to hundreds of billions of dollars against global resistance, now has Fortune 500 companies who run Wall Street clamoring to get their own piece of it. It's a win.”
Another user replied, “I believe its a part of this evolution. Same like history with fiat. Crypto must evolve to the point where people will understand and rather to use only the decentralized ones.”
We may have to wait to see the potential impact of both stable coins. Hopefully both the coins would be widely accepted by the crypto community for a revolutionary change.