On Monday, Binance CEO Changpeng Zhao, also known as CZ, announced that the company had decided to convert $1 billion worth of BUSD from the Industry Recovery Initiative fund into three different cryptocurrencies. Zhao noted that significant movements would be noted at the chain after the announcement.
CZ’s Decision to Convert $1 Billion BUSD Comes Amid Troubles for Stablecoins
Binance CEO Changpeng Zhao (CZ) Announced on Monday that the company had converted $1 billion BUSD into bitcoin (BTC), bnband ethereum (ETH). “Given changes to stablecoins and banks, Binance will convert the remaining $1 billion of BUSD Industry Recovery Initiative funds to native crypto, including BTC, bnband ETH. Some movement of funds will happen on the chain. Transparency,” Zhao said.
After tweeting the announcement, CZ shared an address for the Industry Recovery Initiative and a transaction explorer link for the transfer that the exchange handled. One person responded to CZ’s Twitter thread and saying: “People who are a bit puzzled by recent stablecoin developments will feel much more at ease.” The CEO of Binance answered that he “didn’t even think of it that way. He was discussing how to keep the funds in a safe asset. But that works too.”
At the time of writing, Binance has 7.56 billion BUSD stablecoins, according to Nansen. exchange wallet tool. CZ’s announcement comes as the USDC struggled this weekend to maintain peg to the US dollar after the failure of Silicon Valley Bank (SVB). Additionally, US regulators forced Paxos to stop issuing BUSD, and billions of BUSD tokens have since been withdrawn from circulation.
While BUSD has faced regulatory scrutiny, the stablecoin managed to stay within the $0.99 to $1 range most of the time. On March 11, 2023, BUSD dipped slightly into the $0.9848 range for a short period of time, but remained stronger than five other stablecoins that deviated from the $1 peg over the past weekend.
What do you think about Binance’s decision to convert $1 billion of BUSD into bitcoin, bnb and ethereum? Share your thoughts in the comments section below.
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