FTX Plans to Offer $1 Million for the Acceptance of Stablecoins

The cryptocurrency Exchange, FTX is planning to increase the adoption of stablecoins. In a recent Twitter thread, the exchange asked its users if prize money of $1 million would be enough for the first bank in each region to accept stablecoins.

Like other digital currencies, stablecoins are under scrutiny in the US. While central banks around the world are supporting CBDCs, the acceptance of private stablecoins is still a major issue. However, digital exchanges are now stepping up to increase the use of stable digital coins.

FTX highlighted that the company is putting its efforts to establish partnerships that can facilitate instant deposits and withdrawals. During the last quarter, FTX witnessed substantial growth in trading volumes and the total number of users.

“How much would it cost to convince a bank to accept stablecoins? If we offered a $1m prize for the first bank in each region that does it, is that enough? Do you work for a bank and want to discuss this? We'd love to form a relationship like this if it means FTX users would have near-instant and near-free deposits and withdrawals,” FTX Tweeted.

In October 2021, FTX raised $420 million in a funding round from some of the prominent international investors, including Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, Tiger Global, Ribbit Capital and Lightspeed Venture Partners.

SBF on Crypto Volatility

In a recent interview with The Block, Sam Bankman-Fried (SBF), the CEO of FTX, said that it is not a good idea to have extremely high leverage on high trading positions.

"Where does that leave you? I think where it leaves you is, yeah, you need to have substantial collateral backing large positions, you need to understand the volatility of the asset, you need to understand 50% moves have happened before," SBF told The Block.