Binance CEO Announces Restoration of Funds Switching from BUSD to ‘Native Cryptocurrency’

The collapse of three major cryptocurrency-backed banks, Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank, sent the stablecoin (USDC) down from its $1 benchmark to $0.87.

Amid growing concerns surrounding stablecoins, Binance CEO and co-founder Changpeng Zhao (CZ) tweeted on March 13 that it would bring its The remaining $1 billion in industry recovery plans was converted into “native cryptocurrencies.”

In light of stablecoin and banking changes, #Binance will switch the remaining $1 billion industry recovery plan fund from BUSD to native cryptocurrencies including #BTC, #BNB and ETH. Some money movement will happen on-chain. transparency.

– CZ Binance (@cz_binance) March 13, 2023

The native cryptocurrencies listed by CZ include Bitcoin (BTC), Binance Coin (BNB) and Ethereum (ETH). He then posted links to the BTC and ETC transaction hash IDs and said the $980 million was transferred in 15 seconds with a transaction fee of $1.98.

The crypto community on Twitter had mixed reactions to the move by the Binance co-founder. Some praised the decision to call it “pure gold,” with suggestions for an alternative currency pegged to the stablecoin:

The move is pure gold. Cryptocurrency power.

– Apart from being pegged to the US dollar, how to diversify investment stable assets?

Major global currencies are allowed now and may be integrated with a CBDC for seamless integration in the future.

This will help reach a large number of unbanked users.

– Vipul CypherPunk (@vipul19) March 13, 2023

Others, however, questioned the move to sell the supposedly stablecoin BUSD and convert it into a more “volatile” asset.

On March 10, Circle, the company behind USDC, revealed that it had tied up around $3.3 billion with the failed SVB, which led to the initial decoupling event. However, by March 13, USDC had bounced back to the $1 peg and is currently hovering around $0.99.

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Circle is also known to have an undisclosed reserve in Silvergate, another U.S. crypto-friendly bank that just went bankrupt.

The instability surrounding USDC had a domino effect on other stablecoins like DAI, USDD and FRAX, which also slipped from the $1 position.

Since events began to unfold on March 10, the entire cryptocurrency space has been nervous about what will happen next. A user in the Twitter community claimed that “no one can bank a cryptocurrency company.”

Information source: compiled by 0x information from COINTELEGRAPH.Copyright belongs to the author Savannah Fortis, without permission, may not be reproduced

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