USDC is a stablecoin or stablecoin is cryptocurrency, based on the physical currency paired with the US dollar (actually issued). Usdc cryptocurrency works in several blockchain networks – from: Etherеum to Stellar and Solana. This was announced on May 15, 2018. The project was officially launched only in September of the same year.
The project is operated by the Center consortium created by Circle and Coinbase. Circle received $ 270 million in ICO funding from investors including Accel Partners, Bitmain, Blockchain Capital, Breyer Capital, CICC Alpha, China Everbright Bank, Digital Currency Group, General Catalyst, IDG Capital and Pantera. The company provides a variety of off-the-shelf applications and programs for integrating financial services, and guarantees a fiat reserve in real US dollars.
What are the advantages of the project
- Ease of transactions. Two parties who have a crypto wallet on the Ethereum platform can transact in usd coins in seconds, regardless of whether what time of day and night they do it and where they are.
This means that even if someone has to send a large payment to an overseas supplier, the payment will be delivered within seconds and the process will be as easy as buying something in an e-commerce store. In contrast, a standard bank or wire transfer can take 1 to 3 days.
- Using a stablecoin such as this saves you from worrying about currency fluctuations as the US dollar remains stable. There are huge fees charged for regular cross-border payments. With USDC, the only fee to worry about is the Ethereum network fee. And this is a fraction of a percent. In addition, the commission does not change, which makes it especially attractive for large payments.
- Compatible with mobile apps like dApps
Crypto-decentralized applications based on blockchains and exchanges have thrived over the past few years. Since USDC is an ERC-20 token, any application that accepts this standard will accept USDC. This allows holders coin usd to buy a wide range of crypto assets up to NFT tokens
- The USDC token holder has the opportunity to earn high interest income if he invests his assets in platforms such as Compound (crypto-pharming). This makes crypto tokens more profitable than keeping fiat currency in a bank on a deposit with almost zero rates.
- Transparency and security. Circle, which issues stablecoin USDC, partnered with Coinbase to fully implement the project. In addition, transactions are audited by Grant Thornton LLP. The involvement of two reputable companies and an audit of a leading accounting firm ensures the transparency of the firm.
In summary in this article, it should be understood not only , what is a stablecoin , pegged to a dollar or other currency, but also how it works. Knowledge of the principles of operation of these types of cryptocurrencies will help a trader or investor choose the right approach in their trading strategy and avoid unnecessary costs when carrying out transactions between cryptocurrencies for various purposes.
