Binance Founder Says the Next Stablecoin Wave Will Be Built by Governments

Changpeng Zhao, founder of Binance, has confirmed he is working directly with multiple governments to launch local, fiat-backed stablecoins, positioning them as national currencies translated onto blockchains rather than private dollar substitutes.

What’s changed isn’t the idea of stablecoins, but who is now building them.

From Dollar Dependence to a Multi-Fiat Design

In public remarks, Changpeng Zhao described a simple premise: every sovereign currency should exist on-chain in native form. The intent is to reduce the crypto market’s dependence on U.S. dollar-pegged tokens and replace it with a multi-fiat system where national currencies function as digital counterparts of existing money.

That framing matters. It shifts stablecoins from being a workaround for banking access into a form of monetary infrastructure, one governments can directly shape and supervise.

Government-Level Conversations Are Already Underway

The discussions are no longer theoretical. Zhao has said he is actively engaging with roughly a dozen governments, most recently during meetings around the World Economic Forum in Davos earlier this year. The focus is not only on payments, but on tokenizing national value in ways that remain compatible with domestic policy goals.

Under this model, Binance and BNB Chain provide the technical rails, while issuance and monetary framing remain sovereign.

Kyrgyzstan Shows What the Model Looks Like in Practice

The most concrete example so far has come from Kyrgyzstan. In October 2025, the country launched KGST, a stablecoin pegged 1:1 to the Kyrgyz som, built on BNB Chain infrastructure. The move went further than simple experimentation, with BNB also designated as part of a selective national crypto reserve framework.

That implementation illustrates the direction Zhao is describing: stablecoins that are explicitly national in scope, rather than globally generic.

Broader Regional Momentum Is Building

Zhao has previously referenced work with governments in Malaysia and Pakistan, while parallel developments are unfolding elsewhere. The Bank of England has been consulting on frameworks for pound-backed stablecoins, and the European Central Bank continues advancing its digital euro project.

Taken together, these efforts point to a regulatory shift. Instead of resisting stablecoins outright, authorities are increasingly exploring how to issue or oversee them directly.

Why Governments Are Reconsidering Stablecoins

Several structural incentives are driving this approach. Native stablecoins give countries more control over monetary representation in the digital economy, reducing reliance on dollar-centric liquidity. They also fit more cleanly into jurisdiction-specific rules, particularly as new frameworks emerge across the U.S., Europe, and Asia.

There is also a practical layer. On-chain local currencies simplify cross-border payments and remittances by allowing settlement in domestic units rather than forcing conversion through USD-based intermediaries.

AI as the Unexpected End User

Zhao has added a forward-looking dimension to the thesis, arguing that AI agents will become the largest users of these stablecoins by 2026. Autonomous systems cannot open bank accounts or clear compliance hurdles, but they can transact freely on-chain. In that context, national stablecoins become machine-native money rather than consumer products.

Structural Takeaway

Zhao’s push signals a quiet reorientation of the stablecoin market. Instead of private issuers competing to dominate dollar liquidity, the next phase increasingly looks sovereign, fragmented by design, and embedded into national policy. If this trajectory holds, the future stablecoin landscape may resemble a digital version of the global FX system, not a single dominant token, but many currencies sharing the same on-chain rails.

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