Do Kwon Had 'The Right Idea' About Stablecoins But 'Failed Miserably On Execution,' Says CZ

Binance CEO Changpeng Zhao praised Do Kwon, the crypto fugitive and CEO of Terraform Labs, and said that the latter had "the right idea" but "failed miserably on execution" as he discussed why banks are a risk to fiat-backed stablecoins.

Binance CEO CZ, as Zhao is more popularly known in the crypto space, was seemingly given the chance to criticize traditional banks after banking turmoil started to spread following the collapse of Silicon Valley Bank and Signature Bank on Friday and Sunday, respectively.

In his tweets over the weekend, the CEO of the world's largest centralized crypto exchange platform by trading volume said that "banks are a risk to fiat-backed stablecoins," which are typically pegged 1:1 with a fiat currency like the U.S. dollar.

His tweet attracted a plethora of mixed reactions, but CZ, in a follow-up tweet even acknowledged Kwon's idea although he said the crypto founder miserably failed in execution.

"Do Kwon actually had the right idea, but just failed miserably on execution," he tweeted.

Kwon is wanted in South Korea after his so-called algorithmic stablecoin TerraUSD (UST) came crashing down in May followed by Terra's native token LUNA, which wiped out billions of investors' funds.

The crash was the first to trigger a series of closures and bankruptcies by crypto businesses like Three Arrows Capital and many others.

While the U.S. SEC already filed charges against Kwon and his company Terraform Labs, authorities, to this day, have no idea of his whereabouts. The latest report about Kwon was that he was in the Balkans where he cashed out some Bitcoins using a BTC machine in the region.

The Binance top boss also noted that fiat currency is already a risk even if cryptocurrency is not in the equation.

Aside from his criticism of banks and fiat currency, CZ also used the opportunity to announce that his company will now start converting "the remaining $1 billion industry Recovery initiative funds from BUSD to native crypto."

The CEO said that Binance will allow converting BTC, BNB and ETH with movements of the funds available on-chain. "Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency," his tweet read.

CZ also boasted that the transfer transaction only took 15 seconds to complete and only cost a meager $1.29.

"The transfer txid. Took 15 seconds and costs $1.29. Imagine moving $980 million through a bank before banking hours on a Monday," he said in another tweet.