Tokens produced by the world’s largest cryptocurrency exchange, can find a second wind as a means of payment — at least so says Chanpen Zhao. In an interview with Crypto founder Binance Briefing said it plans to turn Binance Coin (BNB) in the payment token. Businessman “definitely hoped” that BNB will be able to find support from retail users. In his opinion, an independent blockchain will give them the opportunity to use the token to pay for goods and services.
Canpan of explained:
BNB remains a token of the standard ERC20, which leads to relatively high transaction fees (comparable to the commissions in the Ethereum network). When will Binance Chain, the Commission will decrease, and the transaction rate will increase. Most likely, we will move on to the formation of the block every second, making the token is extremely handy in the retail trade.
Binance Coin is a service token; in the course of ICO Binance last year, it sold 200 million of these coins, which give owners access to cheaper deals on the exchange. The fee for transactions that occur in tokens BNB, below.
Until the summer of this year the discount was 50% but now it decreased to 25%. In addition, Binance introduced rebates depends on the trading activity of the user for 30 days and the number of coins in his account.
Each quarter buys Binance party tokens and burn them. Today she bought and destroyed 10 million from BNB.
Recently Binance invested in TravelbyBit, the Australian startup that contribute to the spread of cryptocurrency in the retail sector. His idea is that tourism will be actively developed, if users will be able to pay in tokens and virtual currency, and not only in Australian dollars. TravelbyBit is not the first project that has taken Binance Coin on Board. Tokens BNB compatible with Pundi X (NPXS) and Crypto.com (formerly Monaco) — these two projects are interested in that people were able to pay with digital currency in everyday life through cryptocurrency credit cards.
In the publication on the website Medium, the representatives of the Binance, announcing investment in TravelbyBit, said they wanted to see Binance “more than just an exchange”. The new mission is to become the main defender of freedom of money. However, Chanpen Zhao said that the previous appointment of Binance Coin remains the same: the owners of the tokens BNB will simply offer additional usage scenarios. Zhao said:
Mission token BNB has not changed, but we try to increase its practical value. The more it is used (and the more usage scenarios), the higher the cost. We definitely want to make him a coin for payment.
In spite of all declarations and initiatives Binance still burns tokens BNB. The first full-year financial transactions, the exchange marked ransom and destroying 1.6 million Binance Coin standing at approximately $15 million at current prices.
During the following four years most of the owners of BNB will lose their bonuses. Although the extent of foreclosure depends on the profits Binance, the total reserve of tokens continues to be reduced each quarter. At a certain stage tokens Binance Coin should end. Crypto Briefing journalists raised this question in conversation with Campana Zhao. He said:
The beauty of cryptocurrency is that it is infinitely divisible. Even if there will be only one BNB, it will still be enough. It just means that we will spend a tiny fraction of a token to each transaction, and one BNB will cost you.
Indeed, one BNB could be very expensive. This does not mean that he is able to become a working payment system in the world. Most likely, the decrease in supply will push users to make a choice in favor of other virtual currencies, specifically designed for the retail sector. They obviously have plenty to choose from.