Changpeng Zhao, the founder of Binance, announced that he is actively working with multiple countries to launch their native stablecoins on the blockchain. His statement was direct: "Every currency should be represented on the blockchain." The post pulled over 80,000 views and 1,300 likes within hours, signaling that the crypto community sees this as more than casual commentary.
The timing is significant. CZ's announcement lands during the deepest market fear since the Luna crash, with the Crypto Fear and Greed Index sitting at 9. While prices bleed, the infrastructure layer of crypto is quietly expanding into sovereign territory.
From USDT Dominance to a Multi-Stablecoin World
The stablecoin market today is overwhelmingly denominated in US dollars. Tether (USDT) and Circle (USDC) together represent over 90% of global stablecoin supply. For users outside the United States, this creates a hidden dependency: every stablecoin transaction is effectively a dollar transaction, regardless of where you live or what currency you earn.
CZ's vision flips this model. Instead of forcing every economy through a USD intermediary, native stablecoins would let countries issue blockchain-based versions of their own currencies. A Brazilian real stablecoin, a Nigerian naira stablecoin, an Indonesian rupiah stablecoin, each pegged to its local currency and operating on-chain.
This is not a new idea conceptually, but CZ claiming he is actively building these with sovereign partners is a major escalation. Binance's reach spans 100+ countries, and CZ's post-DOJ settlement advisory role gives him a unique position to negotiate with governments directly.
What "Working With Countries" Actually Means
CZ did not specify which countries are involved, but the context clues narrow the field. Since stepping down as Binance CEO in late 2023, CZ has been publicly advising governments on blockchain infrastructure, crypto regulation, and national digital asset strategy. His recent travel has included meetings with officials across Southeast Asia, the Middle East, and Africa.
The most likely candidates for early sovereign stablecoins include:
- UAE (AED stablecoin). The UAE has been aggressively courting crypto companies, and Abu Dhabi's ADGM already has a stablecoin framework.
- Thailand (THB stablecoin). Thailand's SEC has been exploring digital currency pilots since 2024.
- Nigeria (eNaira expansion). Nigeria already operates a CBDC but adoption has been low. A private stablecoin alternative could succeed where the government version struggled.
- Brazil (BRL stablecoin). Brazil's Drex CBDC pilot has faced delays, creating an opening for a Binance-backed alternative.
The key distinction between CZ's approach and central bank digital currencies (CBDCs) is ownership. CBDCs are government-controlled, often with surveillance capabilities and spending restrictions. Native stablecoins issued on public blockchains would inherit the composability and permissionless nature of DeFi while still being pegged to local fiat.
The FX Problem That Sovereign Stablecoins Solve
For anyone using crypto cards internationally, this matters immediately. Today, if you hold USDC and spend in Thailand, you absorb a USD/THB conversion somewhere in the payment chain. Even cards advertising zero FX fees still expose you to the spread between your stablecoin's denomination and the merchant's local currency.
A native THB stablecoin would eliminate this entirely for Thailand-based spending. You hold THB on-chain, you spend THB at the point of sale, no conversion needed. The same logic applies to every country with its own stablecoin.
The practical implications for crypto card users:
- True zero-cost local spending. No FX conversion means no spread, no markup, no hidden cost.
- Multi-currency card wallets. Cards could hold balances in multiple native stablecoins, automatically routing the right currency for each transaction.
- Cross-border remittances via stablecoin swaps. Sending money from a USD stablecoin to a PHP stablecoin would happen on-chain in seconds, bypassing SWIFT and Western Union entirely.
How This Connects to the European Stablecoin Push
CZ's announcement does not exist in isolation. Just days ago, 11 European banks formed a consortium to build euro stablecoin infrastructure, projecting that euro-denominated stablecoins could grow 1,600x to over a trillion euros by 2030. The MiCA regulatory framework is already creating the legal rails for compliant stablecoins in Europe.
Meanwhile, the White House stablecoin yield debate continues to shape US policy, with lawmakers fighting over whether stablecoin issuers should be allowed to pass yield to holders. And Visa and Mastercard's resistance to stablecoin payments shows the traditional payment networks are not embracing this transition willingly.
CZ's move adds a developing-world dimension to what has been a Western-led stablecoin narrative. If he succeeds, the stablecoin ecosystem could splinter from a USD-dominated duopoly into a genuinely multi-currency network.
The Bear Market Infrastructure Play
Building stablecoin infrastructure during a market crash is a classic smart-money move. While retail investors panic and the Fear and Greed Index sits in single digits, the companies and individuals who build through downturns tend to capture the next cycle's growth.
For crypto card issuers, the implications are strategic:
- Cashback in local stablecoins. Instead of earning BTC or USDC rewards that fluctuate against your local currency, you could earn rebates denominated in your home currency's stablecoin.
- Staking native stablecoins. DeFi protocols could offer staking yields on sovereign stablecoins, creating a new category of low-risk yield for card-linked wallets.
- Reduced regulatory friction. Cards that spend locally denominated stablecoins may face fewer compliance hurdles than USD-denominated alternatives in certain jurisdictions.
FAQ
What did CZ announce about stablecoins?
CZ revealed he is working with multiple countries to launch native stablecoins representing their local currencies on the blockchain. He stated that "every currency should be represented on the blockchain."
Which countries might get native stablecoins first?
While CZ did not name specific countries, likely candidates include UAE, Thailand, Nigeria, and Brazil based on his recent government advisory work and those countries' existing crypto-friendly or CBDC-exploring frameworks.
How would native stablecoins affect crypto card spending?
Native stablecoins would enable true zero-cost local spending by eliminating the need for USD conversion. Cards could hold local currency stablecoins and spend them directly at merchants without FX spreads.
Are sovereign stablecoins the same as CBDCs?
No. CBDCs are government-issued and government-controlled. Sovereign stablecoins issued on public blockchains would be privately operated but pegged to local fiat, inheriting the composability and accessibility of DeFi protocols.
Overview
CZ's announcement that he is building native stablecoins with sovereign partners is a structural shift, not just news. If successful, it transforms the stablecoin market from a USD-dominated system into a multi-currency network that mirrors the real global economy. For crypto card holders, this means the possibility of truly local spending anywhere on earth, cashback in your own currency, and cross-border payments without the FX tax. The infrastructure is being built during a bear market, which historically means it will be ready for the next wave of adoption. Whether CZ can deliver on the sovereign partnerships remains to be seen, but the direction of travel is clear: stablecoins are going native.
Recommended Reading
- Euro Stablecoins Could Explode 1,600x as 11 European Banks Form Consortium
- White House Stablecoin Yield Showdown
- Visa and Mastercard Reject Stablecoin Payments
