Binance to Discontinue Support for BUSD Stablecoin

One sentence summary – Binance, a global cryptocurrency exchange, has announced that it will no longer support the Binance USD (BUSD) stablecoin, prompting users to seek alternative options, with Binance promoting the First Digital USD (FDUSD) as an alternative and offering incentives for users to switch, while the decision highlights the need for adaptability and strategic planning in the cryptocurrency industry.

At a glance

  • Binance will no longer support the Binance USD (BUSD) stablecoin
  • Paxos, a Binance partner, has also ceased issuing new BUSD coins
  • Users are seeking alternative stablecoin options
  • Binance has outlined a timeline for the gradual withdrawal of BUSD support
  • Binance is promoting the First Digital USD (FDUSD) as a new stablecoin alternative

The details

Binance, a leading global cryptocurrency exchange, has declared that it will no longer support the Binance USD (BUSD) stablecoin.

This announcement follows the earlier decision by Paxos, a Binance partner, to cease issuing new BUSD coins.

The discontinuation of BUSD has led users to seek alternative stablecoin options.

Binance Outlines Timeline for BUSD Withdrawal

Binance has outlined a timeline for the gradual withdrawal of BUSD support, which includes several key dates for users.

From September 7, 2023, Binance will suspend cross-margin BUSD borrowings.

Starting October 19, 2023, Binance will no longer accept new BUSD collateral.

Binance-Peg BUSD withdrawals across all networks will be stopped from September 7, 2023.

However, BUSD (ERC-20) transactions will continue on the Ethereum network until further notice.

Binance Promotes First Digital USD (FDUSD)

In the wake of the discontinuation of BUSD, Binance is promoting the First Digital USD (FDUSD) as a new stablecoin alternative.

To encourage users to switch from BUSD to FDUSD, Binance is offering several incentives.

These include a 1:1 exchange rate and commission-free trading.

This promotion of FDUSD aligns with Binance’s ongoing partnership with Paxos.

It also coincides with the regulatory approval of Paxos by the New York Department of Financial Services.

Speculation and Caution in the Cryptocurrency Community

The cryptocurrency community is currently speculating on the potential impact of Binance’s decision to discontinue BUSD.

Many are advising caution and thorough research before making any investment decisions.

The decision by Binance to stop supporting BUSD underscores the need for adaptability and strategic planning in the cryptocurrency industry.

The announcement by Binance regarding the discontinuation of BUSD support represents a significant development in the cryptocurrency market.

BUSD users are being advised to transition to alternative stablecoin options.

Binance is promoting the First Digital USD (FDUSD) as a viable alternative.

The phased timeline for the discontinuation of BUSD support, along with the incentives offered by Binance, is designed to facilitate a smooth transition for users.

The potential impact of this decision on the industry and on investment strategies is something that market participants should carefully consider.

Article X-ray

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A broken chain link symbolizing the discontinuation of Binance’s support for BUSD stablecoin.

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blockzeit.com
– Binance, a global cryptocurrency exchange, is discontinuing support for the Binance USD (BUSD) stablecoin.
The decision follows Paxos discontinuing new BUSD coin issuance earlier this year.
– BUSD users will need to transition away from the stablecoin and explore alternative options.
– Binance has outlined a timeline for phasing out BUSD support, with various milestones for users.
– Cross-margin BUSD borrowings will be suspended from September 7, 2023.
– Binance will stop accepting new BUSD collateral from October 19, 2023.
– Binance-Peg BUSD withdrawals across all networks will be halted from September 7, 2023.
– BUSD (ERC-20) transactions will continue on the Ethereum network until further notice.
– Binance is promoting a new stablecoin, First Digital USD (FDUSD), as an alternative to BUSD.
– Incentives for transitioning from BUSD to FDUSD include a 1:1 exchange rate and commission-free trading.
– Binance’s decision is influenced by its partnership with Paxos and the regulatory approval of Paxos by the New York Department of Financial Services.
The crypto community is speculating on the impact of Binance’s decision and advises caution and thorough research before making investment decisions.
– Binance’s move highlights the need for adaptability and strategic planning in the crypto industry.

 

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