[nailer]

Binance replacing USDC with BUSD is not having USDC reserves. If Binance had USDC reserves they would not need to burn BUSD, mint USDC or require banks to be open. Because Binance already would hold the USDC.

Likewise if something happened to the value of BUSD, it should be fine, because you hold USDC. Except you don't because Binance replaced the coins they were supposedly holding in custody for you.

[madsbuch]

1. It was said that Binance treats BUSD and USDC as the same currency 2. It was said that there is a high number of USDC withdrawals

    If Binance had USDC reserves they would not need to burn BUSD

Well, if they didn't provide the service of treating the currencies as the same, they would have been able to fully cover. However, they do, so it is expected that they need to convert. All in all, it seems perfectly natural what they do.

[nailer]

> It was said that Binance treats BUSD and USDC as the same currency

Yes, that is a mistake, trust in Circle is not the same as trust in binance

> service of treating the currencies as the same

Replacing customer’s investments is not a service, particularly if it makes it more difficult to withdraw the currency.