Crypto Academy Week 7 - Homework Post for @yohan2on||Stable coin Part 2

Definition- USD Coin (USDC) is a digital stable coin that is backed by the United States dollar and runs on the Ethereum blockchain and the Algorand Blockchain. Each USDC is backed by a dollar held in reserve.
USDC is an Ethereum-based stablecoin launched in September, 2018. Its policies, including its technical and financial standards, are managed by a consortium called CENTRE, started by peer-to-peer payment company Circle and crypto exchange Coinbase.

[Coin/USD] (https://pixabay.com/photos/money-cash-usd-two-dollar-bill-1459232/)

USDC represents fiat, or government money, on the blockchain. It is redeemable on a 1:1 basis for U.S. dollars, issued by regulated financial institutions and backed by fully reserved assets which are audited by accounting firm Grant Thornton LLP every month. USDC can be easily moved across various cryptocurrency exchanges and platforms quickly which makes it a tool used by traders as well as investors in developing markets looking for a stable blockchain-based asset.

[Coin] (https://pixabay.com/photos/euro-coins-currency-cent-euro-cent-1353420/)
Why USDC
USDC is an alternative to other USD backed cryptocurrencies like Tether (USDT) or TrueUSD (TUSD). In a nutshell, USD Coin is a service to tokenize US dollars and facilitate their use.
How the USDC is pegged to the dollar
A USDC token is created when someone purchases a token from an approved issuer. For every US dollar received, the issuer will apply an ERC-20 smart contract to create an equivalent amount of USDC. This is then sent back to the original buyer. The US dollar that was originally sent to the issuer is then held in reserve as collateral. The buyer has their USDC, which is redeemable against the issuer for the equivalent fiat currency US dollars. This guarantees that every USDC token is backed by a US dollar and it’s redeemable on a 1:1 basis.
How to buy USDC

USDC tokens can either be bought directly from the issuer as above, or they can be traded on exchanges such as Luno. When USDC is acquired through an exchange, the token is not being acquired from the issuer directly but from a third party, however you still own the token and will always be entitled to redeem it from the issuer, should you choose to do so.
How USDC differ from other stablecoins
We encourage you to familiarise yourself with the issuer directly, but USDC differs from other stablecoins such as Tether in that its issuers represent that they are regulated financial institutions with high standards of corporate governance, who are obligated to provide full transparency and who are regularly audited. This ensures that reserves are held on a 1:1 ratio with the fiat currency equivalent. All USDC issuers must report their USD holdings, which are in turn published by accountancy firm Grant Thornton LLP on a monthly basis. These monthly reports are available online to anyone who wishes to view them.
Conclusion
From a user perspective, people use USDC for a wide variety of reasons. One of the primary reasons is to hedge against volatility during market dips – either in cryptocurrency or your own local currency. Another is that when selling crypto, you may want to keep your funds on the platform ready for your next play. If you keep it on there as USDC, you don’t have to pay fees for fiat on and off ramps.
Cc:
@yohan2on
@steemitblog
@steemcurator01
@steemcurator02