Review on Binance USD by Peace Ofem
A STABLECOIN WITH A DIFFERENCE
Stablecoins are assets that have price stability traits that make it apt for short-term and medium-term use as a unit of account and store of value, often fixed to a national currency. established on the price stability, they play an important role on payments, transactions, account settlements, and Decentralized Finance (DeFi).
The Binance USD (BUSD) is a stablecoin that is supported by the Binance platform and is dollar backed. founded in partnership between the largest and most trusted companies in the crypto space which are Binance and Paxos, it is a digital currency issued as ERC-20 and supports BEP-2.
There have been lots of interest on it as it accords its users the capacity to make transactions with other digital and blockchain based assets and at the same time reduce volatility risk.
Approved by the New York State Department of Financial Services (NYDFS) Binance stablecoin is accessible for direct acquisition and redemption at the rate of 1 BUSD = 1 USD as well as available on Binance for trading in pair with Bitcoin (BTC), Binance coin (BNB), Ripple’s (XRP) plus other coins.
BUSD uses are:
- Payment for goods and services.
- Store on an exchange or in a wallet.
- Transfer digital dollars anywhere with minimum cost and on the blockchain in minutes.
- Use as collateral and loan asset.
- Trade on different exchanges.
- Used as cross collateral on the Binance Futures platform.
- Deposit to earn an interest rate.
BUSD can be bought on exchanges that allow for purchases and trading of it.
BUSD is a good storage cryptocurrency solution for user's who need a good and positive option. The fact that it has been recognized by NYDFS makes it a very perspective stablecoin and seen as safe bridge between crypto assets and fiat.
Pros
- Good reputation and funds security
- Since trading started on the BUSD platform, high liquidity has been offered to it's customers
- BUSD is backed by U.S. dollars in U.S banks insured by FDIC.
- A leading audit will verify monthly compliance with BUSD tokens and base U.S dollars.
Cons
- When USD value drops, that of BUSD will too
