Stablecoins connect real economy and blockchain Binance Japan GM

The general manager of Binance Japan, Takeshi Chino, was interviewed by CoinDesk Japan and described stablecoins as the “glue” that connects the real economy to the blockchain. Chino explained that while the volatility of cryptocurrency prices can create profit opportunities, it does not stimulate broader demand for cryptoassets. He believes that stablecoins, which are pegged to traditional assets like the U.S. dollar, are designed to be free of price swings and will serve as the connection between the real economy, the blockchain economy, and the Binance ecosystem.

Chino acknowledged that the crypto winter may be hindering the traditional model of a crypto exchange business due to lower valuations and trading volume, which will diminish revenue from fees. However, he stated that Binance’s vision for “freedom of money” through crypto and blockchain technology supersedes the exchange business model and current market conditions.

Binance’s re-entry into the Japanese market, via its acquisition of regulated crypto exchange Sakura Exchange BitCoin, will occur this summer, two years after receiving a warning from the country’s Financial Services Agency (FSA) for operating in Japan without permission. Chino admitted that gaining regulatory acceptance in Japan will be a challenge, as it requires ensuring that regulators understand how their products work in order to gain trust.

It is worth noting that rival crypto exchanges, blockchain (COIN) and Kraken, have both withdrawn from the Japanese market in the last six months, citing “market conditions” as the reason.

Read More: Japan to Enforce Tougher Crypto Anti-Money Laundering Laws Next Month: Report

Edited by Stephen Alpher.