Binance announced on Monday the auto-conversion of its customers’ stablecoins USDC, USDP and TUSD into Binance USD (BUSD). The move, which has baffled several crypto members, will take effect on September 29. Some believe this is a way for the exchange to stop supporting USD Coin (USDC) exchanges. And that would only consolidate BUSD, which is currently the third-largest stablecoin by market capitalization. Find out what Circle’s CEO thinks of Binance’s decision.
Binance’s move will make it easier to adopt USDC
Jeremy Allaire said on Twitter that Binance’s new decision is not only beneficial for the exchange. Indeed, the CEO of Circle believes that his stablecoin will be able to benefit from the next changes. According to him, this decision could facilitate the adoption of the stablecoin and make it more useful. Jeremy Allaire explained: “Binance is not ending support for USDC, and the change will likely lead to more USDC flowing into Binance.“.
You should know that the BUSD (binance native stablecoin) is the third largest stablecoin behind the USDC and the USDT. Binance said it made its recent decision to improve liquidity and efficiency of its capital. The exchange thus intends to consolidate several digital assets equivalent to the dollar around a single cryptocurrency.
That said, Binance’s move could make the Circle-created stablecoin a standard rail for stablecoins. The USDC could thus become a kind of bridge for these assets between the centralized exchanges and the decentralized exchanges. This will be possible especially since the users can withdraw the funds from the BUSD account in USDC, USDP or TUSD.
According to Circle’s CEO, Binance’s upcoming changes could see more USDC flowing into the exchange. He stated : “With consolidated dollar books, it will now be easier and more attractive to move USDC to and from Binance to trade major markets.“.
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