Circle CEO Considers It Positive That Binance Removed USDC

2 years ago · Updated 2 years ago

✍️ 8 September, 2022 - 16:35 👤 Editor: Jakub Motyka

Jeremy Allaire considers that Binance's decision on BUSD and the rest of the stablecoins will be positive for USDC.
He pointed out that the elimination of the pairs of stablecoins will simplify the use of different currencies.

How will this affect stablecoins and the market in general?

Jeremy Allaire, the CEO of Circle, believes that Binance's decision to switch USDC, USDP and TUSD to BUSD will be a positive thing for cryptocurrencies and for his token in particular. This is because it will increase the usefulness of stablecoins within the market and greatly simplify the processes.

Binance, the main cryptocurrency exchange by capitalization, announced recently the implementation of a system that automatically converts USDC, USDP and TUSD tokens into BUSD. The measure is accompanied by the elimination of all related pairs in spot trading, futures, margin, staking and more.

What Is Circle CEO's Opinion On Binance's Move?

Through a series of tweets, Jeremy pointed to Binance's move as a positive, as it will prevent liquidity from being split between different stablecoins. In this way the order books will be united in a single pair offering a more stable currency with greater liquidity. This will not take away the utility of the Circle token (USDC), since it can continue to be used within the platform in the form of BUSD.

For his part, CEO of Market Maker Wintermute, Evgeny Gaevoy, backed up Jeremy's opinion with a small thread on Twitter. In it he stated that the measure will make the markets much more liquid, and the work of market makers easier. “Before this change, you would need to convert (USDC) to BUSD/USDT and then use it to trade futures on margin. You can now skip the conversion step both ways, for BUSD-margined products. It's a better user experience while keeping USDC useful (and I'd even say more useful)".

How Will The conversion Of USDC And The Rest Of the Stablecoins Affect BUSD And The Crypto Market?

The CEO of Circle believes that the move taken by Binance could trigger a net share shift between USDT to BUSD and USDC. On this, Gaevoy notes that “in the long term, liquidity in pairs other than USDT will increase. Ultimately, until Tether improves its operational efficiency, minting/burning is a T+1 process, as opposed to near-instant in the case of USDC/BUSD/TUSD. The minting/exchange cost will continue to lose ground”.

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