• Binance is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum and various other digital assets.
• This move follows a string of bank failures, including those that were friendly towards crypto and tech enterprises.
• Bitcoin recently shot up by more than nine percent, showing the growing strength and stability of the cryptocurrency.
Binance Conversion of Stable Currency
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. This move was announced in a tweet by CEO Changpeng Zhao, with the goal to help crypto companies and banks undergoing liquidity crises.
Bank Failures
The news 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 have been labeled some of the worst since 2008’s financial crisis and Great Recession. It appears Circle’s USDC coin temporarily lost its peg to the U.S. dollar during this time, leading Binance to take action in light of uncertainly surrounding stable assets‘ safety in times like these.
Bitcoin Price Surge
In spite of all this news surrounding bank closures, bitcoin recently shot up by more than nine percent over a few days; adding about $3,000 to its price while showing strength in stability as well as market cap dominance compared to other cryptocurrencies. Many traders believe this could be indicative that the bear market may finally be ending for 2022 crypto investors.
Industry Recovery Initiative Funds
As part of their Industry Recovery Initiative funds program, Binance is using money from their reserves to help stabilize organisations affected by liquidity crises due to bank closures or unstable asset prices falling out from beneath them unexpectedly – without risking total collapse for any company or organisation involved..
Conclusion
Binance continues to remain ahead of industry trends with their latest conversion decision – proving once again why they are one of the top exchanges in terms of stability and security when it comes to trading cryptocurrencies around the world today!