Binance to Drop Support for BUSD by 2024, Promotes New Stablecoin
Binance, the world’s largest cryptocurrency exchange, announced that it will be dropping its support for its stablecoin BUSD by 2024. BUSD is currently the 5th largest stablecoin by market capitalization.
Binance cited the need to focus on future projects as the reason for dropping its support for BUSD. Instead of focusing on BUSD, Binance has decided to promote its new stablecoin, the Binance USD (BUSD), to be launched in 2021.
The new BUSD will be a fully collateralized stablecoin, backed by the U.S. dollar. Binance’s goal is to create a digital version of the U.S. dollar, allowing users to send funds as quickly and securely as possible. BUSD will be ERC-20 compliant, meaning it can be used across different Ethereum blockchains. It will also be compatible with Binance’s existing infrastructure, allowing for instant deposits and withdrawals on Binance platforms.
Binance also announced that it will be finalizing partnerships with global financial institutions including banks, OTC desks, and payment networks to make BUSD the most widely accepted digital currency. This will facilitate the use of BUSD for payments and other transactions across the world.
Binance is currently in the process of applying for a New York State Trust company licence to provide banking services to its users as well. Once approved, BUSD will become a legitimate banking currency, accepted by banks and other financial institutions.
To help achieve this goal, Binance is also launching an incentivized support program for BUSD users, featuring promotional activities, trading fees discounts, and other rewards.