Circle CEO Jeremy Allaire believes it could be positive for Binance to drop support for USDC.
Allaire stated that with Binance ending support, USDC could become a stablecoin that can be used between centralized exchanges and decentralized exchanges.
Circle CEO Optimistic For USDC
Circle CEO Jeremy Allaire said he is not worried about Binance stopping supporting USDC trading.
Allaire thinks that this move by Binance could be a big boon for USDC adoption.
Binance announced that all funds held in USDC, USDP and TUSD will be automatically converted to BUSD on September 29. The exchange will continue to support USDT, the largest stablecoin.
Binance’s move aims to increase liquidity and capital efficiency within the exchange by consolidating dollar-pegged stablecoins around a single asset.
With this change made by Binance, all USDC deposits will be automatically converted to BUSD. Users will be able to withdraw their BUSD assets from the exchange as USDC, USDP and TUSD if they wish.
Allaire anticipates more USDC flows on Binance with this forced conversion.
Allaire believes that with this change, USDC will become the number one stablecoin of choice for moving funds between centralized and decentralized exchanges.
Allaire also shared his thoughts on Binance not making a similar move for USDT. Circle CEO said that USDT liquidity is too much on Binance, so a potential BUSD transition could be devastating. Additionally, he stressed that USDT is “not even close” to qualifying as a cash-equivalent asset.
