A cryptocurrency called USD Coin (USDC) is made to have a fixed value of $1 USD. A broader class of cryptocurrencies known as stablecoins, which use a variety of processes — such pegging their value to fiat currencies or commodities — to help maintain a stable price, includes assets like USD Coin and Tether (USDT). In the unpredictable cryptocurrency market, stablecoins are a crucial tool that enable users of digital assets to profit from the relative stability of the dollar or other stable assets.
The corporation CENTRE, which was launched by the financial technology (FinTech) company Circle and the cryptocurrency exchange Coinbase, produced the USDC stablecoin. On May 15, 2018, Circle first revealed its plans to develop USD Coin and raised $110 million. The USDC currency first debuted as an ERC-20 token on the Ethereum blockchain, but it has subsequently been added to the Solana, Stellar, Avalanche, Flow, Tron, and Algorand blockchains as well.
The market capitalization of USDC was 44 billion as of November 15, 2022, placing it second among stablecoins. Around 127 million USDC were in circulation, according to the first report from CENTRE, which was published in October 2018. There will be around 44 billion by 2022.
Is USDC sufficiently transparent?
Cash and short-term US government bonds are used as collateral for USDC. $1 is kept as collateral in accounts at licensed U.S. financial institutions for every USDC token that is in use. Grant Thornton LLP, a U.S. accounting firm, has audited those accounts. Circle stated that it would start releasing weekly attestation reports in May 2022. They contribute to the credibility of USDC by making public the specific amount of real money supporting the stablecoin.
What is the USDC 2.0 narrative?
The upgraded version of USDC was unveiled by the CENTRE consortium in August 2020. For digital wallets and other services that support stablecoins, USDC 2.0 offers increased functionality. Prior to now, holders of USDC and other tokens built on the Ethereum platform had to pay a commission to complete transactions. Customers must retain ETH in their accounts at all times to pay for gas.
The creators claimed that it prevented widespread adoption. CENTRE has incorporated a gasless send capability into the USDC to get rid of this obstacle. This enables wallet developers to collect fees directly in USDC tokens rather than ETH and pay commissions on behalf of clients. To integrate the support, the platform's developers created a public USDC smart contract. Developers have the option of offering this service independently or using a third-party service to cover the costs.
According to the consortium team, gas-free transmit will greatly increase USDC's capabilities in payments, peer-to-peer exchanges, and online commerce. The update is completely backwards compatible with earlier protocols. This indicates that programs, exchanges, and wallets that are already connected with USDC are unaffected by USDC 2.0.
How may USDC be used?
As a method of payment. If you wish to send money using a cryptocurrency, you may rely on USDC to maintain its value over time without experiencing the sometimes-dramatic price swings that are typical of cryptocurrencies.
to generate interest. In exchange for USDC deposits, certain platforms give consumers interest. It's important to remember that this activity carries some danger. Additionally, USDC can be found in DApps and DeFi. Aave, Compound, Dharma, OpenSea, and various DApp and DeFi protocols, among others, all employ USDC.
Connecting the realm of cryptocurrency with regular payment processors.
Along with certain well-known payment processors, Circle has worked with two of the biggest payment networks in the world. When Circle and Visa partnered in December 2020, businesses on the Visa network could start accepting USDC. Mastercard (NYSE:MA) announced plans to accept USDC as a payment mechanism in July 2021. Both Stripe and Checkout.com, payment processors, announced support for USDC in 2022.
What distinguishes USDC and USDT from one another?
Due of its transparency, USD Coin is frequently regarded as the safer choice. Since the company's founding, reports from the management have confirmed the reserves. On the other side, Tether Limited went years without disclosing its reserves. Due to its lack of transparency, it has also run into legal issues. According to one lawsuit, unbacked Tether issuances hurt the cryptocurrency market by $1.4 trillion.
Size is Tether's advantage. In comparison to USDC, it has a significantly greater market cap and a higher trading volume. Due to Tether's high trading volume, it will usually be a little simpler to exchange it for other cryptocurrencies.
Because it is regarded as a stored value instrument in the majority of U.S. states, USDC has the benefit for you of being subject to additional regulatory monitoring. Tether hasn't yet undergone an impartial audit either.
How to purchase USDC?
Through the MEXC website or app, you can buy USDC.