• Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets.
• The move comes at the height of several bank failures that have been labeled as among the worst since the 2008 financial crisis and Great Recession.
• Bitcoin shot up by more than nine percent and added about $3,000 to its price over the course of just a few days, a testament to its growing strength and stability.
Binance Converting Stable Asset
Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets. The news came about in a tweet issued by the company’s CEO Changpeng Zhao.
Bank Failures Contributing to Conversion
The conversion comes at the height of several bank failures including those such as Silvergate and Silicon Valley Bank that were friendly towards crypto and tech enterprises. These failures have been labeled as among the worst since the 2008 financial crisis and Great Recession; with Silicon Valley Bank housing the reserves of Circle’s USDC coin, another stable asset similar with BUSD.
Bitcoin’s Growing Strength
During all this hype surrounding these bank closures it appears Circle’s stable coin lost its peg to the U.S. dollar but has since regained it; however this does not diminish Bitcoin’s growing strength as it shot up by more than nine percent adding about $3,000 to its price over a few days – making it a true testament to its stability.
Industry Recovery Initiative
The goal behind Binance’s conversion is to help crypto companies and banks that are not necessarily in danger of collapsing altogether but enduring liquidity crises through an Industry Recovery Initiative fund from BUSD; this was initially set to aid FTX – now defunct crypto exchange – out of a liquidity crisis in November last year though plans for doing so fell through after they looked at FTX’s problems being too big for assistance.
At present, cryptocurrency exchanges are taking steps toward ensuring their own stability amidst global economic uncertainty following multiple bank failures associated with crypto-friendly institutions like Silvergate Bank & Silicon Valley Bank. With Bitcoin showing signs of resilience during these tough times, there may be some hope for investors yet regarding security within their investments!