Binance to Reduce Tether Support with Own Stablecoin
By Luke Flowers – Bitcoin Enthusiast
Recently, Binance has decided to separate itself from Tether with the preparation of using its own in-house stablecoins.
According to Bitfinix’s data, Tether’s stablecoin market share is now at 98.7%. So far, no USD-based cryptocurrency has been able to topple Tether in terms of importance to the crypto trading ecosystem. Many users will use Tether as a hedge against volatility and then buy XRP or another crypto once the price is lower.
Over the last couple of years, Tether’s role in the cryptocurrency world has grown quite a bit. With the US Securities and Exchange Commission (SEC) looking into iFinex, the company behind both Bitfinex and Tether, Binance is seeking to expand risks for itself as well as its users.
Stablecoin’s importance isn’t just critical to Bitfinix, but Binance as well. Binance CEO, Changpeng Zhao had earlier confirmed that his company is presently testing and on the verge of launching its own British pound-linked cryptocurrency. UK users could more easily buy and sell Bitcoin and access the markets with a pound linked crypto. This crypto could have the potential to be accepted in the store in the future.
With the British pound under their radar, Binance may start minting Japanese yen and Euro cryptocurrencies. Users would be able to buy and sell cryptocurrency utilising these coins to help alleviate inconveniences regarding foreign exchange rates that many encounter with Tether.
This also provides a new use for the Binance chain, further supporting the value of the stablecoin for Binance, the 7th most valuable crypto with a $4.47 billion market cap.
Currently, there are no plans for Binance to introduce a USD-based stablecoin for selling and buying crypto, but the Tether market share could be reduced for the company.
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