All players in the cryptosphere are preparing for the arrival of The Merge of Ethereum. For its part, Binance is making significant changes to its platform. Before the end of September, it plans to automatically convert several stablecoins to BUSD or Binance USD. A decision that will not be without setbacks for binannes and binannes!
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Automatic conversion at a ratio of 1:1
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Automatic conversion to BUSD: practical, but…
Automatic conversion at a ratio of 1:1
The official announcement appeared on the Binance website on September 5, 2022. Effective from September 29 at 03:00 UTC, this automatic conversion will concern both existing balances and new deposits. More concretely, it will affect the main stablecoins from Binance: USDC, USDP and TUSD.
In his message, however, the platform specifies that this automatic conversion to BUSD will not affect users’ choice of withdrawal. That is, they will still be able to withdraw funds in USDC, USDP, and TUSD at a 1:1 ratio. They will of course take into account the balance of their denomination in BUSD.
Automatic conversion to BUSD: practical, but…
According to Binance, the automatic conversion of certain stablecoins to BUDS will optimize the efficiency of users’ capital. It will also improve liquidity. Especially since the converted balance will be available on the account within 24 hours.
It is also a practical solution. Binancers and Binancers will no longer be required to go through the BUSD for any deposit of stablecoins. According to the first analyses, the BUSD could become one of the stablecoins the most reliable thanks to this automatic conversion system.
The other side of the coin: the aforementioned stablecoins will be doomed. The same is true for all the offers attached to it. As of September 29, 2022, it will also no longer be possible to trade trading pairs including these stablecoins.
Good news for some and cause for concern for others! The automatic conversion of some stablecoins to BUSD will necessarily affect the cryptocurrency market. However, this could be a temporary announcement as Binance reserves the right to review or reverse its decision (at any time).
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