On 5th September 2022, Binance announced that it to stop supporting USDC and other stablecoins on its platform. Binance would convert customers’ holdings of the USD Coin (USDC), Pax dollar (USDP), and TrueUSD (TUSD) into Binance USD (BUSD) on 29 September 2022, and customers transferring those tokens to the exchange will see them automatically converted into Binance’s stablecoin after that date. However, customers will be able to withdraw money denominated in USDC, USDP, or TUSD when removing money from Binance.
However, Circle CEO Jeremy Allaire on Tuesday 6, September tweeted a suggestion that the move might ultimately benefit USDC, as Binance customers will still be able to deposit and withdraw funds in the form of USDC, but they will not have to manually convert those funds into Tether or BUSD to participate in Binance offerings like margin trading.
Binance, The world’s largest cryptocurrency exchange, said the move was designed to “enhance liquidity and capital-efficiency for users.” Furthermore, Binance didn’t mention why the changes don’t involve Tether’s USDT, which currently has a circulation of around $67 billion. “The consolidation of stablecoins on one of the world’s most active exchanges foreshadows future competition among stable assets,”
In addition, The ThunderXpay analysts’ team gave an opinion on this news and mentioned that Binance would try to turn other stable coins into their coin (Binance USD (BUSD)) as a cryptocurrency majority coin alike USDT.
Published 14/09/2022
By Ashley Jones
