What is BUSD and how does it work as a stablecoin?

3 answers

• Nov 23, 2021 · 3 years ago
  BUSD is a stablecoin that was introduced by Binance, one of the largest cryptocurrency exchanges in the world. It is pegged to the value of the US dollar, which means that 1 BUSD is always equal to 1 USD. This stability is achieved through a combination of collateralization and regular audits of the reserves. BUSD can be used for various purposes, such as trading, remittances, and as a store of value. It provides users with the benefits of cryptocurrencies, such as fast and borderless transactions, while minimizing the volatility typically associated with other digital assets.
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• Nov 23, 2021 · 3 years ago
  BUSD functions as a stablecoin by maintaining a 1:1 ratio with the US dollar. This means that for every BUSD in circulation, there is an equivalent amount of US dollars held in reserve. This ensures that the value of BUSD remains stable and predictable, making it an attractive option for users who want to avoid the volatility of other cryptocurrencies. BUSD can be used on various platforms and exchanges that support it, allowing users to easily transfer and trade it for other digital assets or fiat currencies.
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• Nov 23, 2021 · 3 years ago
  As a stablecoin, BUSD provides a reliable and secure way to store and transfer value. It offers the convenience and efficiency of cryptocurrencies, while eliminating the price fluctuations that can occur with other digital assets. BUSD is backed by a combination of cash and other liquid assets, which are held in reserve to ensure its stability. This makes it an ideal choice for users who want to hedge against market volatility or simply hold a digital asset that maintains a stable value. Additionally, BUSD can be easily integrated into various decentralized finance (DeFi) applications, allowing users to access a wide range of financial services using this stablecoin.
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