You can now deposit and withdraw Digital Dollars to and from your Bitso account using a select group of Digital Dollars*. Depositing any of these Digital Dollars will credit the exact deposit amount to your Bitso USD balance, and withdrawing will do the same. You can then use this USD balance to trade in our three USD books!
For example, if you send 10 USDC to your Bitso wallet, you will see your balance increased by 10 USD. If you then decide to withdraw 5 USD, you can choose one of the supported Digital Dollars to do so and your balance will be 5 USD**. This happens because Bitso offers a 1:1 conversion for this group of Digital Dollars to fiat and vice versa.
What are Digital Dollars?
Digital Dollars are cryptocurrencies that are pegged or backed to a reserve asset like the Digital Dollar. A lot of Digital Dollars use the Ethereum network to operate. Digital Dollars helps protect users against the volatility of cryptocurrencies and fluctuation in value. It gives users an alternative currency to save that cannot be controlled by a government or bank.
What are some things I can do with this conversion?
This 1:1 conversion allows you to:
Deposit different Digital Dollars and trade in a single book
Deposit a Digital Dollar and withdraw a different Digital Dollar
Deposit a Digital Dollar and withdraw “real” US Dollars*
Any other combination you can think about!
Does this conversion incur any fees?
No, no additional fees are charged to achieve this 1:1 conversion.
Can I deposit any Digital Dollar in Bitso?
No, only deposit the Digital Dollars that we support. You can find them by following the deposit flow on the website, and selecting the Digital Dollar option. The list of supported Digital Dollars for conversion are USDC.
If I send one of the supported Digital Dollars to my Bitso wallet, what will happen?
You will be credited the amount you sent in Digital Dollars.
Will I have sub-balances for each Digital Dollar?
No. You will only have one Digital Dollar balance. It is easiest to think about these Digital Dollars as Deposit and Withdrawal methods for your Digital Dollar balance on Bitso.
What about TUSD? It is also a Digital Dollar, why don’t you offer this same conversion?
We currently do not offer this same conversion for TUSD and will continue treating TUSD as it currently exists on the platform. Please wait for more news on this.
Will there be a book against each Digital Dollar?
No. We will only have books with USD. However, since we convert these Digital Dollars to USD, you can trade on these, more liquid, books!
How can I learn more about these Digital Dollars?
Learn more about USDC here: https://www.circle.com/en/usdc
** Blockchain fees apply on withdrawals, so balance might not be 5USD exactly