Earlier this month, Binance made a move that raised eyebrows. The world’s largest crypto exchange launched “BUSD auto-conversion,” which will convert any existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into Binance’s own stablecoin. Binance said this auto-conversion is intended to enhance liquidity and capital efficiency for its users. The conversion will kick in on September 29.
It seems like a smart move for Binance… but it’s also raising questions about monopolistic behavior.
In this episode of Crypto Monitor, Vin Narayanan and Allison Brickell discuss why Binance made this decision, how it will impact other cryptos and why this is a threat to the stablecoin infrastructure as we know it.
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