Stablecoins Are the 'Glue' Between the Real Economy and Blockchain: Binance Japan General Manager

Binance Japan may be still "a long way off" its business and activities being properly understood and in gaining regulatory acceptance, said the exchange's Takeshi Chino.

AccessTimeIconMay 26, 2023 at 12:53 p.m. UTC
Updated May 26, 2023 at 3:32 p.m. UTC
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The general manager of Binance Japan described stablecoins as the "glue" between the real economy and the blockchain in an interview with CoinDesk Japan.

Takeshi Chino, speaking ahead of Binance's re-entry into Japan via its acquisition of regulated crypto exchange Sakura Exchange BitCoin, described how volatility of crypto prices may lead to profit opportunities but will not help stimulate broader demand for cryptoassets.

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  • "We believe that stablecoins will serve as the glue between the real economy, the blockchain economy, and the Binance ecosystem," Chino said. "When you do something stably, price fluctuations become noise."

    Stablecoins are pegged to the value of traditional assets, usually fiat currencies such as the U.S. dollar, and therefore are designed to be free of the price swings that often afflict cryptocurrencies like bitcoin (BTC).

    Rival crypto exchanges Coinbase (COIN) and Kraken have both withdrawn from the Japanese market in the last six months, citing "market conditions" as the reason.

    Chino said crypto winter may be hampering the traditional model of a crypto exchange business, given how lower valuations and trading volume will diminish revenue from fees. He said that Binance's vision for "freedom of money" through crypto and blockchain technology supersedes the exchange business model and the present market conditions.

    "The ecosystem has many facets," he said. "For example, we will provide various services from a different angle to finance, and we will also provide various IP (intellectual property) contents in the form of Web3."

    Binance's move back into Japan this summer will come two years after the exchange received warning from the country's Financial Services Agency (FSA) that it was operating there without permission.

    Chino described how one of the keys to gain regulatory acceptance in Japan is ensuring understanding of how its products work in order to gain trust, something he admits may be a challenge.

    "We are confident about our product and technology, but we are still a long way off in terms of whether the company Binance and its activities are properly understood," he said.

    Edited by Stephen Alpher.







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    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


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