Tech
Binance’s New Stablecoin Policy: What You Need to Know
(CTN News) – On Sept. 29, Binance users’ USDC, USDP, and TUSD deposits will be automatically converted to BUSD. See how stablecoin holders will be affected by this story.
BUSD Auto-Conversion from Binance
Beginning September 29, Binance will automatically convert users’ existing balances and new deposits of USDC, USDP, and TUSD stablecoins into BUSD.
The world’s largest cryptocurrency exchange announced earlier this month that it will convert USDC, USDP, and TUSD deposits into Binance’s stablecoin BUSD.
What you need to know about the change:
- On Sept. 29 at 3 am UTC, existing USDC, USDP, and TUSD balances in user accounts will be automatically converted to BUSD. Users will see the converted balance within 24 hours.
- Before the Auto-Conversion, users can manually convert their USDC, USDP, or TUSD balances to BUSD at a 1:1 ratio on Binance Convert between 3 am UTC Sept. 26 and 3 am UTC Sept. 29. While that period is in effect, manual conversion can only be performed from USDC, USDP, and TUSD to BUSD, not the other way around.
- USDC, USDP, or TUSD can be converted manually for a minimum amount of 1 USDC, USDP, or TUSD. In the event that there is less than 1 USDC, USDP, or TUSD in a user’s balance, it will be converted during the auto-conversion process.
- Once the Auto-Conversion has been completed, users can withdraw USDC, USDP, or TUSD at a 1:1 ratio from their BUSD balances.
- The list of stablecoins eligible for auto-conversion may be amended by Binance.
What Is a Stablecoin?
To stabilize the price of a cryptocurrency, stablecoins are pegged to another asset class, like fiat currency or gold.
Among the most fundamental benefits of cryptocurrencies like bitcoin and ether is that they don’t require trust in an intermediary institution to send payments, so anyone can use them.
One major drawback of cryptocurrencies is that their prices tend to fluctuate wildly and are unpredictable.
Because of this, they are difficult to use by the average person.
It is generally expected that people will know how much their money will be worth a week from now, both for their security and for their livelihood.
The unpredictability of cryptocurrency prices contrasts with the generally stable prices of fiat money, such as U.S. dollars, and other assets.
A currency like a dollar changes in value gradually over time, but cryptocurrencies, which rise and fall in value regularly, experience more drastic changes.
To see how much bitcoin fluctuates compared to another fiat currency, the Canadian dollar (CAD), the following graph shows bitcoin versus USD.
What Is Binance:
The company’s financial products suite includes the world’s largest digital asset exchange by volume, which positions it as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider.
With a comprehensive portfolio of crypto-asset products and offerings, Binance aims to increase the freedom of money for users, including trading and finance, education, data and research, social good, investment and incubator solutions, decentralization, and infrastructure.
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