What is Binance USD (BUSD)? Details of BUSD coin

What is Binance USD (BUSD)?

BUSD is a combination of Binance (B) and US dollars (USD) to create a new stablecoin, Binance USD. In other words, Binance USD is a stablecoin belonging to one of the leading cryptocurrency exchanges in the crypto market today Binance, and is pegged at a ratio of 1:1 to the US dollar.

Not only that, but the New York State Department of Financial Services (NYDFS) also agreed to approve this coin. On September 5, 2019, BUSD officially appeared on the market. The aim of this project is to combine today’s prevailing blockchain technology with the stability of the US dollar. BUSD has two standards: Ethereum’s ERC-20 and Binance Chain’s BEP-2.

Is BUSD safe?

To determine if Paxos is safe, we need to know the unit behind the Binance USD. That’s Paxos. This is the custodian and USD issuer of Binance USD according to the ERC-20 standard.

This combination can be said as “fish helps water, water helps fish”, a perfect symbiosis. On the one hand, Binance wanted to find a stable, regulated platform that was tailored to the operation of the Binance ecosystem. On the other hand, Paxos owns a monitoring system, developed with safety solutions. Therefore, both Binance and Paxos have benefited each other, especially by building solid trust for a stablecoin that has both reputable value and strong development of the leading blockchain ecosystem present.

On the Binance side, Mr. Changpeng Zhao (CZ) – CEO of this exchange, revealed more about this partnership:

“Paxos is well known as the world leader in digital asset trusts today. Therefore, we are extremely honored to have the opportunity to work with them in the development of our stablecoin. We hope that through this release of BUSD, Binance will be able to take full advantage of the current digital assets to extend several financial services to its diverse blockchain ecosystem. with more use cases and conveniences.”

A big advantage of BUSD that cannot be ignored is publicity and transparency. Not only that but BUSD is also approved by the New York Department of Financial Services (NYDFS). This partly helps investors become more secure when participating in the project

This is also an assurance that BUSD will optimize the user experience by being able to make transactions of the Binance ecosystem safer, faster, more economical, and more convenient.

With these innovations, BUSD promises to be an ideal solution to make it easier for users to access the volatile DeFi decentralized economy.

Paxos representative, CEO Rich Teo also responded that:

“It can be said that NYDFS was right in deciding to approve BUSD because this is an indispensable step if it wants to develop sustainably in the volatile cryptocurrency market. It is our great honor to be able to service top names like Binance to showcase products that can be flexibly customized to the needs of their users. Our Paxos brand stands for integrity with two missions: protecting our customers and ensuring transparency for all Paxos partners and customers.”

For today’s vibrant ecosystem, Binance USD is considered a highly ambitious and experimental initiative. There are still many investors who do not care or understand what the value of stablecoins is. They are just traders who like to surf, risking the risks and fluctuations of the crypto market, without considering the “stable” factor of the coin.

However, based on the development potential of cryptocurrencies and blockchain technology it can be partly concluded that the application of cryptocurrencies to life, especially in the payment field, will be somewhat safer. compared to some current forms. Not only that, using stablecoins, users also limit fraud as well as the volatility of the crypto market.

Therefore, users can feel more secure when owning a less volatile coin like BUSD.

What is Binance USD used for?

Characterized by the price stability of a stablecoin, Binance USD plays an extremely important role when it comes to transactions, settlements, and payments in this decentralized finance (Defi) platform.

Here are a few common uses of BUSD:

Convert to digital dollars (BUSD) anytime, anywhere in a snap thanks to blockchain technology at incredibly affordable prices.
Buy and sell BUSD on most exchanges.
Deposit BUSD to get interested back, similar to the staking process.
Payment of BUSD for certain items, products, or services.
BUSD mortgage/cross mortgage in smart contracts or loans.
Store BUSD on listed exchanges or in e-wallets.

The most popular way to own BUSD today

Users can buy and sell BUSD directly at a 1:1 ratio against the US dollar on the Paxos platform or can also trade with many other tokens on the Binance.com website.

In addition, users can convert (convert) between other digital dollars such as USDT, USDC, and TUSD to BUSD very quickly and simply on Binance itself and vice versa.

Some other popular Binance fiat currencies

BUSD is not the only fiat currency at Binance. Besides this coin, Binance also backs many other fiat currencies such as Binance IDR (BIDR), Binance GBP (BGBP), and Binance KRW (BKRW). In there:

Binance IDR (BIDR) is a stable coin pegged to the Indonesian Rupiah (IDR) price at a 1:1 ratio (1BIDR = 1 IDR). This is considered the first licensed partnership in Indonesia, between Toko Crypto and cryptocurrency exchange.
Binance GBP (BGBP) is a stablecoin pegged to GBP (British Pound) at a 1:1 ratio (1BGBP = 1 GBP). This is also a token issued by Binance and 100% backed by the amount of GBP Binance holds in the bank account.
Binance KRW (BKRW) is a stablecoin pegged to KRW (Korean Won) at a 1:1 ratio (1BKRW = 1 KRW), in an international partnership event with BxB, Inc. Korean.