Quote from: jaberwock on Today at 08:54:41 PM

Quote from: Bitcoin_Arena on February 14, 2023, 11:53:31 PM

Quote from: jackg on February 13, 2023, 01:59:59 PM

There's also the case that binance said any usdt or usdc deposited there would be converted to busd, I think that also makes it much riskier than usdc and usdt because of that (you're relying on multiple assets).

The excluded tether because of its huge volume so far in the platform but if you deposit USDC, TUSD or USDP, they would automatically be converted to BUSD

They also delisted any trading pairs of USDC, TUSD or USDP

I sort of understand the logic behind that. There are a lot of people attacking Binance for how big they are, and they are rejecting to work with others because of this. Doesn't mean that they are doing anything bad, it just means they are doing what they think would be good for their company.

Additionally, if they do not accept USDC, just do not deposit that? Nobody forces anyone to do it, it is not like they are breaking a law by not accepting a coin. I believe this is not the solution to their problems, they need to figure out who is the one that keeps spreading these rumours about them being in trouble and we are seeing some of their opponents in this case.

Could it also be that Binance diversifies their own liquidity portfolio by taking those other pegged currencies and turning it into BUSD for their customers? They still own the other stable currencies and perhaps they expected to BUSD to get attacked at some point by the SEC like is the situation now. A risk could be that bank accounts or other liquid assets get frozen and they won't be able to serve their customers. But if they hold those other stable currencies they could still prevent a bank run and collapse from happening.

If they give out BUSD and we now have a look at their balance sheet and how everything is backed, the only way for them to fully back it 1:1 is by using their own cash to buy US Treasury Bills and US Treasury Debt. Otherwise they would have listed other stable digital currencies as some of the backing they have for distributed BUSD.

Now that it is clear that BUSD is also fully backed and at least as well backed as Tether is I think it is now only a question of time until those other stable currency providers will get mail from the SEC as well.