Reshab AgarwalBinance will soon remove the USDC trading pair informed the exchange in a recent notice issued on Monday. This is quite a strong move and could even become controversial considering that USDC is the 2nd largest stablecoin right now. The exchange also informed us that they will auto-convert USDC balances to BUSD if users do not remove them from the platform. It means this will increase BUSD adoption.
Binance’s new move against USDC
Image Source: CNBC
Binance BUSD coin has a competitive edge against other stablecoins because the exchange can turn things around like this. With USDC being removed from the platform by the end of September, the main stablecoins that stay are USDT and BUSD. This means less competition and lower options for users. To be honest, for a normal user, it doesn’t change much because these are all the safer options among stablecoins, and using any of them would be similar to the other.
Binance said that they are taking this decision to improve liquidity and capital efficiency. So, users will have time till 29 September to either withdraw or convert their USDC from the platform. After that, Binance will auto-convert the holdings to BUSD. The exchange is also going to remove a few more pairs from 26 September that include USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, TUSD/BUSD, TUSD/USDT. Many other pairs with USDC and TUSD will also be removed.
Reaction on social media
As I mentioned above, that USDC is the 2nd largest stablecoin and has a lot of users. So, Binance removing it from their platform won’t get 100% support. There are 3 types of reactions on social media. The first category of people who don’t care, then we have people who are happy with the decision, and the 3rd category has critics.
Crypto monopoly 101
Binance will remove $USDC as a tradable asset by Sep 25 to push their $BUSD.
They also hired ex Brazilian central Bank President as advisor, because bankster connections matters. For regulations.
Binance is deleting competitors like Google did 10 years ago.
— Bloodgood (@bloodgoodBTC) September 5, 2022
As we can see, a comparison is drawn with google that shows that companies can get dirty to be the leader in the space. Considering that USDC is almost 2.5x larger than BUSD, removing them from the platform doesn’t make sense, citing better liquidity.
What are your thoughts as Binance announces that it will soon remove the USDC trading pair? And do you think this move can be justified by any means? Let us know in the comments below. And, if you found your content informative, do share it with your family and friends.
Also Read: Bank of Russia allows crypto use for cross-border payments.