Battle of the stable coins: Could Binance stable coin beat Tether?

12 Jun, 2019
by Ryan Boltman
Analysis
Battle of the stable coins: Could Binance stable coin beat Tether?

With the recent news that Binance will be launching their own stable coin on their platform, could stable coins suffer from Binance launching their own reserve-backed stable coins on their exchange in the future? 

The growth of stable coins in 2018 stemmed from the lack of choice in the market when Tether came under fire for potentially not being backed by reserves, people felt the need to move to another token that was stable but there were none. Fast forward to 2019 and there are now more stable coins in use than ever before, with the number continuously growing.

Binance have announced that they will be launching their own stable coin based on the British Pound (GBP) in the future, set to be called Binance GBP (BGBP). While the launch of a GBP stable coin makes it one of the first, it is evident that USD stable coins are more commonly used. Binance could also be set to launch a USD and EUR stable coin in the future.

Should Binance be looking to add several currency stable coins, could the top dog be dethroned? Tether has dominated the market, even after all the recent issues, and remains the top used stable coin currently. However, if Binance looks to add their own stable coin, there is a really good chance that it could dethrone USDT which has been shrouded in negativity over the past two years. Binance currently ranks as one of the top cryptocurrency exchanges in the word, and if the exchange was to do away with other stable coins and focus on their own, there is a good chance it could dominate the market.

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