Binance CZ Announces Conversion of BUSD Recovery Funds to “Crypto Native”

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Binance CEO announced that the exchange will convert funds from the Billion-Dollar Industry Recovery Initiative into native cryptos such as BTC, ETH, and BNB from BUSD.

Binance co-founder and CEO, Changpeng “CZ” Zhao announced on March 13 that due to stablecoins and banking changes, he would be converting $1 billion of his BUSD into native crypto. These native cryptos will include ether, bitcoin, and BNB.

CZ then added links to the hash ID of BTC and ETH transactions and wrote that $980 million took 15 seconds to transfer for a fee of $1.29.

Given the changes in stablecoins and banks, #Binance will convert the remaining $1B Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB, and ETH. Some fund movements will occur on a chain. Transparency.

— CZ Binance (@cz_binance) March 13, 2023

After the announcement, the market came under buying pressure. Bitcoin traded above the $22.5,000 mark, ETH broke through the $1,600 mark and BNB hit $300, rising 10% to new two-week highs .

Meanwhile, Twitter’s announcement drew mixed reactions on the platform. One user said the move was pure gold and offered advice on possibly considering USD-over-pegged stablecoins. Additionally, the user mentioned that they are considering the integration of global currencies and CBDCs to help reach the unbanked.

This movement is pure gold. cryptographic power.

– How about diversifying into stables other than those pegged to the USD?

For now, allow major global currencies and perhaps integrate with CBDCs to enable seamless integration in the future.

This will help reach a large number of unbanked users.

— Vipul CypherPunk (@vipul19) March 13, 2023

Other users said the BUSD selloff was a draw and called on users to applaud the move.

The move comes just days after regulators shut down Signature Bank, leaving the crypto market red hot. Regulators also shut down Silvergate Bank early last week, followed by the collapse of Silicon Valley Bank (SBV) on Friday night, leading investors to withdraw their shares to protect capital.

Circle’s USDC shortly after withdrew after announcing that $3.3 billion of its funds were still in SBV. Meanwhile, the company also announced that it has some of its reserve funds in Silvergate. USDC’s instability led other stablecoins to briefly slip from their peg before stabilizing again at $1, such as USDD, DAI and FRAX.

These activities have led Crypto Twitter to raise concerns about the crypto market. Scott Melker, a crypto investor going through The Wolf Of All Streets, mentioned that the bank collapse has left crypto companies without any means of banking.

Silvergate, Silicon Valley and Signature have all closed.

Depositors will be healed, but there is hardly anyone left to bank crypto companies in the United States.

— The Wolf of All Streets (@scottmelker) March 12, 2023

The head of the Blockchain Association’s crypto policy promoter, Jake Chervinsky, said the bank shutdowns have created a “huge gap” in the crypto market for consumer-friendly banking options.

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