On 31st August 2023, Binance announced that it would gradually stop supporting BUSD stablecoin on its platform.

This is due to Paxos, the company that issues the BUSD stablecoin, pausing the minting of new BUSD tokens.

But the token will still be redeemable on Paxos till February 2024.

Starting December 31, 2023, at 03:00 UTC, BUSD withdrawals will be stopped.

Any remaining BUSD balances in Binance accounts will be automatically converted to FDUSD at a 1:1 conversion rate.

Following this automatic conversion, users can still deposit BUSD into their Binance accounts and manually convert it to FDUSD at a 1:1 conversion rate.

However, this automatic conversion is not for users in Japan, France, Italy, Poland, and Kazakhstan.

They are to convert their BUSD holdings to FDUSD manually.

This manual conversion option will remain available until further notice.

See more information on the delisting for Spot Traders below.

BUSD Stablecoin Important Notice for Spot Trading Users

As listed in the table, Binance will cease trading the following trading pairs on its Spot market on these dates and times.

Next is the update for Spot Bot traders.

BUSD Stablecoin Important Notice for Spot Trading Bots Users

Binance will discontinue Spot Trading Bots services for the listed spot trading pairs at the specified times:

• December 11, 2023, at 03:00 UTC: 
  • AGIX/BUSD, BUSD/BIDR, BUSD/BRL, BUSD/DAI, BUSD/TRY, EUR/BUSD, FET/BUSD
• December 13, 2023, at 03:00 UTC: 
  • GALA/BUSD, INJ/BUSD, LINK/BUSD, LUNA/BUSD, LUNC/BUSD, RUNE/BUSD, SHIB/BUSD, TUSD/BUSD, WBTC/BUSD
• December 15, 2023, at 03:00 UTC: 
  • ADA/BUSD, ALGO/BUSD, ATOM/BUSD, AVAX/BUSD, BCH/BUSD, BNB/BUSD, DOGE/BUSD
• December 15, 2023, at 05:00 UTC: 
  • BTC/BUSD, BUSD/USDT, DOT/BUSD, ETH/BUSD, FDUSD/BUSD, FTM/BUSD, LTC/BUSD, MATIC/BUSD, NEAR/BUSD, SOL/BUSD, XRP/BUSD

To avoid potential losses, all Spot Trading Bots users should update or cancel their Spot Trading Bots before the termination time for the trading pairs.

For information on when Binance will terminate BUSD trading pairs for the futures and margin, loans, and other services, check this post.

Moving on, let’s look at the question: Are stablecoins dead?

Are Stablecoins Dead? – My 2cents

First, it was UST, an algorithmic stablecoin crashing when the LUNA saga happened.

Now, its BUSD stablecoin support is being stopped on Binance following Paxos’ halting of the stablecoin minting.

Though the move had been announced earlier than now, the news gains traction as the deadline (Dec. 2023) comes knocking.

Let’s not forget CZ, the former Binance CEO’s saga, which just happened (Nov. 2023).

This got crypto enthusiasts wondering if that will be the end for stablecoins.

I will say it is not the end of stablecoins. I mean, the Binance Team is proffering another stablecoin as an alternative for BUSD.

For starters, stablecoins are cryptocurrencies tied to real-life assets like the USD.

What this means is that the volatile nature of this type of coin is significantly reduced.

For example, the number one stablecoin, USDT, has its value tied 1:1 to the US dollar ideally.

Hence, many people use them as hedges to inflation.

The only time I think stablecoins will die off is when the real-life assets they are tied to wans and eventually die off.

Provided that the real-life asset is good to go, stablecoins will keep thriving.

Yes, it may take many hits and even be shaken to its root, but it will always bounce back.

Note that the opinion here is solely mine and should not be considered financial advice.

Let’s go and conclude this post.

Conclusion

Here is the end of today’s post.

If you hold BUSD stablecoin, convert it to another token or sell and withdraw your funds.

Do this before 15th Dec. 2023 and finish all withdrawals before 31st Dec. 2023.

Give this post a share to alert other Binance users to do what is needed.

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Cheers!