### What is BUSD?
BUSD (Binance USD) is a stablecoin pegged to the US dollar, where 1 BUSD = 1 US dollar at all times. It was launched in 2019 by the Binance platform in partnership with Paxos and is regulated by the New York State Department of Financial Services (NYDFS).
### Advantages of BUSD
✔ Fully backed: For every BUSD issued, there is one US dollar in bank reserves.
✔ Transparent: Subject to periodic financial audits to ensure reserves are covered.
✔ Low cost: Fast and cheap transfers via networks like Ethereum and BNB Chain.
✔ Compliant with regulations: Licensed and operates under regulatory oversight.
### Uses of BUSD
- Trading: Use it as a trading pair (like BTC/BUSD) on the Binance platform.
- Money transfers: Send and receive international payments without high banking fees.
- Saving: As a means to preserve value away from the volatility of other cryptocurrencies.
### Comparison between BUSD, USDC, and USDT
| Standard | BUSD | USDC | USDT |
|--------------|----------|----------|----------|
| Issuer | Binance + Paxos | Circle + Coinbase | Tether |
| Transparency | High | High | Limited |
| Regulation | Licensed (NYDFS) | Licensed | Less regulated |
### Potential Risks
- Issuance halt: In February 2023, Paxos halted the issuance of new BUSD due to regulatory pressures.
- Withdrawal restrictions: May be affected by Binance policies or government laws.
### Conclusion
BUSD has been one of the safest and most transparent stablecoins, especially for users of the Binance platform. Although the issuance of new units has stopped, it is still traded and used in transactions. If you are looking for an alternative, USDC is a good option due to its level of transparency and regulation.