Circle CEO Argues That Binance’s Move To Stop Supporting USDC Is Positive
Jeremy Allaire, CEO of Circle, praised Binance’s choice to transfer USD Coin (USDC) holdings of its users to the Binance USD (BUSD) stablecoin.
The action would, in Allaire’s words, “lead to a progressive net share shift from USDT to BUSD and USDC” and “improve USDC’s utility.”
Allaire proceeded by saying that since FTX and Coinbase already use the Converged dollar books, Binance’s decision to do the same is a positive step.
Wintermute CEO supports Binance’s move
Crypto market maker Wintermute’s CEO Evgeny Gaevoy also supported Binance’s decision.
Gaevoy claims that deleting the majority of stablecoin pairs makes the market more liquid and the jobs of market makers simpler. He claimed that the change would be advantageous for the stablecoin as well because it would make it easier to deposit and withdraw funds via the platform.
Tether’s power is threatened
Meanwhile, Gaevoy pointed out that the move challenges Tether’s (USDT) dominance of the space.
In the long run, the liquidity of non-USDT pairs would increase because, according to Gaevoy, users would “keep questioning what makes tether so “unique” that they need to deal with conversion.”
Gaevoy went on to say that USDT needed to increase its operational effectiveness and mint/redeem cost in order to stop falling behind US-native stablecoins.
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