Crypto exchange Binance have decided to stop using Binance GBP Stable Coin (BGBP), previously BGBP was tied at 1: 1 ratio to the British pound.
According to the announcement, the suspension will take place tomorrow.
It's been more than a year after Binance listed Binance GBP Stable Coin (BGBP) for the first time in July 7 and opened trading for the BGBP / USDC trading pair.
But tomorrow Binance will stop trading BGBP and at the same time the exchange will also delist the BGBP / USDC pair.
A Binance representative said: "BGBP is our first experiment with a fiat backed stablecoin."
"It worked fine, but in the process of redemption, it was not the most user-friendly" and so "we have decided to stop offering and will move on to providing users with good services. than"
According to some traders, Binance stopped using BGBP because demand for the stablecoin was too low.
“There seems to be a lack of demand for BGBP. This stablecoin has a circulating supply of only around £ 700,000. Compared to other stablecoins, it is very far less, for example BUSD has a circulating supply of more than $ 662 million, ”commented a trader.
Another reason for the BGBP shutdown may be due to Binance's decision to close its subsidiary in Jersey later this month.
It is also worth noting that Binance's announcement to stop using BGBP came before the draft UK stablecoin regulation. This country wants to regulate stablecoins to the same standards as other payment methods.
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