Bitcoin, more reliable than stablecoins – The situation seems to want calm down in the Bitcoin (BTC) market and cryptos, or even improve. But trust in stablecoins is more than ever before precarious. Who could have thought that even the USDC of Circle could lose its peg to the US dollar? Faced with these fears, Changpeng ZhaoCEO of Binancetakes the lead, and converted the guarantee fund of the exchange platform in real cryptocurrenciesincluding Bitcoin.
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When Bitcoin (logically) became a safer value than stablecoins again
In front of the USDC stablecoin peg loss on the dollar during this weekend, many have undoubtedly tried hastily to convert it into currency fiat. But, obviously, others have turned to bitcoin. Indeed, the king of cryptos first barely flinched at the start of USDC’s difficulties, then the course of the BTC exploded by +10% in the last 24 hours.
This preference for real cryptocurrencies rather than stablecoins has materialized at Changpeng “CZ” Zhaothe founder and boss of the crypto-stock exchange Binance. In a tweet published on his official account this Monday, March 13, 2023, the CEO announced to us that he was going to convert $1 billion in stablecoin BUSD in cryptocurrencies. In this case, in bitcoins, ethers (ETH) and BNB.
“Given the upheavals within stablecoins and banks, Binance will convert the remaining funds from theIndustry Recovery Initiative of $1 billion of BUSD in native cryptocurrency, including BTC, BNB, and ETH. Some movement of funds will occur on chain (on blockchain). Transparency. »
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A transfer of 1 billion in a few seconds for 1 dollar? It is possible with the blockchain
No sooner said than done. Just minutes after the announcement – and while the traditional bankers were still sleeping -, CZ announced that the first transaction had already done. As the leader of Binance points out, it will have taken “15 seconds and cost $1.29” to transfer 985 million dollars in BUSD. And all this on an early Monday morning, before bank opening hours.
Remember that the fund Industry Recovery Initiative from Binance, announced in the aftermath of the FTX bankruptcy disasteris an initiative stimulus of the crypto sector. This fund aims to deal with liquidity crises ad hoc (but dangerous) that players in the cryptosphere may encounter.
Would Binance play the role of ” central bank “ cryptos? Or at least, would be inspired ? In any case, yesterday – in the middle of Sunday – the Federal Reserve American (the Fed) has also released a $25 billion fund to prevent the general banking contagion of the liquidity crisis of the Silicon Valley Bank (SVB).
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