Binance CEO Changpeng Zhao (CZ) said that stablecoin regulation could help accelerate its adoption, according to a Feb. 1 Twitter thread.

CZ pointed out that stablecoins are under strong regulatory focus and their regulation would “bring much-needed certainty to issuers, users, and service providers.”

Stablecoins have faced increased scrutiny over the past year following the collapse of Terra’s algorithmic stablecoin UST. Financial regulators have highlighted the dangers the asset class poses to the broader financial system and have increased their regulatory efforts around the space.

CZ noted that we are already seeing the benefits and use cases of stablecoins in “cross-border payments, hedging against inflation, and even aid disbursement.”

(By Oluwapelumi Adejumo)