{"id":151487,"date":"2023-09-10T09:56:00","date_gmt":"2023-09-10T09:56:00","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=151487"},"modified":"2023-09-11T17:48:28","modified_gmt":"2023-09-11T17:48:28","slug":"binance-usd-busd","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/binance-usd-busd\/","title":{"rendered":"Binance USD (BUSD): A Stablecoin that Combines Innovation and Regulation"},"content":{"rendered":"

What is Binance<\/a> USD? Cryptocurrencies are a type of asset that can fluctuate significantly in value, as demonstrated by the market’s repeated falls and rises. Many potential investors are hesitant to enter the crypto industry, due to the high uncertainty and risk involved.<\/strong><\/p>\n

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To address this issue, the first stablecoin <\/a>was created in 2014, to reduce the volatility of crypto assets.<\/strong> Stablecoins are a special kind of cryptocurrency that is backed by another asset or a basket of assets, such as fiat currency or gold, to keep their price stable.<\/p>\n

A stablecoin that is pegged to the U.S. dollar at a 1:1 ratio should always be worth $1. However, not all stablecoins can keep their peg during periods of market stress, because they may not have enough reserves to support their value.<\/strong><\/p>\n

In recent years, we have witnessed several stablecoins lose their peg and drop below their target value, resulting in huge losses for investors<\/strong>. On the other hand, some stablecoins have proven to be resilient and reliable, and one of them is the Binance USD (BUSD).<\/p>\n

BUSD is a stablecoin that has risen to the top places among the cryptocurrencies in less than three years. It has attracted many users who value its stability and convenience.<\/strong> But what makes BUSD so special? How does it compare to other well-known stablecoins? And what are the prospects for its future growth or decline?<\/p>\n

\"What<\/p>\n

What Is Binance USD (BUSD)?<\/h2>\n

BUSD is a stablecoin backed by fiat currency and issued by Binance and Paxos<\/a>. Each BUSD token represents one US dollar that is held in reserve. BUSD aims to offer a more stable cryptocurrency option for traders and investors who want to avoid the volatility of the digital asset market.<\/strong><\/p>\n

The introduction of BUSD on the Binance platform is a strategic move to promote the adoption of cryptocurrencies.<\/strong> By providing a stablecoin option, Binance can attract more users who may have been reluctant to enter the digital asset market due to volatility.<\/p>\n

It is designed to offer users a convenient and secure way to trade and store value on the Binance ecosystem. BUSD can be used as a base currency for many trading pairs on Binance.com, such as BTC\/BUSD, ETH\/BUSD, and XRP\/BUSD.<\/p>\n

This increases the liquidity and diversity of the Binance exchange and attracts more users who want to access a wide range of digital assets. BUSD is also compatible with both Ethereum and Binance Chain, as it follows the ERC20 and BEP-2 standards. This means that BUSD can be easily transferred and integrated with various platforms and applications that support these blockchains.<\/strong><\/p>\n