USD Coin (USDC) is a digital Stablecoins built on the Ethereum, Algorand, Stellar, Solana Blockchain, and the Hedera Hashgraph system. It is attached to the US dollar. USD Coin got administered by the Centre consortium created by Circle of members from Coinbase, a cryptocurrency exchange, and Bitmain, a Bitcoin mining company and a Circle investor. USDC was announced initially by Circle on May 15th, 2018, and debuted on September 26th of that year. USDC is a USD-backed cryptocurrency that competes with Tether (USDT) and TrueUSD (TUSD). There were 24.1 billion USDC in circulation as of June 2021.
What is USD Coin, and how does it work? Let's discuss all of this in the article below.
What is USD COIN?
USD Coin, in a nutshell, is a service that tokenizes US dollars and allows them to be made use of on the internet and public Blockchain. Furthermore, USDC tokens can get converted to USD at any time. The ERC-20 smart contract guarantees the distribution and renovation of USDC coins. Putting US dollars on the Blockchain allows them to be sent globally in minutes and gives cryptocurrencies much-needed stability. It also opens up new trading, lending, risk-hedging, and other possibilities.
What makes USDC so unique?
The US Dollar Coin isn't the first or even the most popular coin backed by the US Dollar. Tether is the rightful owner of such a title. Tether's finances, on the other hand, are being closely scrutinized. There was a claim that says there must be a real US dollar in the bank for every Tether in circulation, but after an examination by the New York Attorney General, the claim got withdrawn. The investigation hasn't concluded yet. As a result, other US Dollar-backed Stablecoins with more obvious funding and reviewing processes have developed in fame.
While USDC is not unique in comparison to its competitors, here are some of the reasons why it stands out:
1. It is regulated by the Government's Financial Crimes Enforcement Network (FinCEN)-known for combating money Laundering.
2. It offers the stability and desirability of the US Dollar with the speed of cryptocurrency transactions.
3. USDC is audited by Grant Thornton, one of the top 10 accounting firms in the world.
How is the US Dollar Coin produced?
In contrast to many other cryptocurrencies, the US Dollar Coin was not created just by mining it. Instead, many meaningful exchanges offer Ethereum ERC-20, Algorand ASA, and Solana SPL tokens and purchase them with US Dollars. According to Circle, there are currently four billion tokens in circulation worldwide.
US Dollar Coin: How Does It Work?
Customers can link their bank account and make a wire transfer in US Dollars once they have met the Know Your Customer (KYC) identity criteria. After the verification, customers can convert the money into USDC, which the customer may subsequently trade for other cryptocurrencies on an exchange. The customer can also exchange their USDC for US Dollars for transfer to their bank account.
Where Can You Get USD Coin?
To purchase USD Coin (USDC), you can do so on the following exchanges:
Tradefada, Binance, Poloniex, Coinbase Pro, Coinbase, CoinEx, Coinsuper, OKEx, CPDAX, Hotbit, Kucoin, Korbit, FCoin, LATOKEN, SouthXchange, COSS, Crex24, etc.
Besides these exchange pairs, you can convert USDC to USD and vice versa at Tradefada. Furthermore, you can store it on any of the exchange Wallets listed above.
Present Stage of the USD Coin Project:
USD Coin is a rapidly developing project that has the backing of reputable institutions. This ecosystem has already grown to include more than 60 partners since the project was announced in May 2018. However, recently, there has been some discussion about how much control the USDC project's creators have over the stable cryptocurrency. For example, suppose there is any suspicion that USD Coins are for illegal activities. In that case, the developers have the right to address and freeze funds.
Most other Stablecoins, on the other hand, have similar clauses. Maker's DAI is the only stable coin without such terms.
Towards the end of 2020, USDC got expanded to include other Blockchain technologies. As a result of bottlenecks and delays, Ethereum, the native Blockchain of the company, is frequently slow. A rival Blockchain, Algorand, Stellar, and Solana have partnered with Centre to expand the market. Similarly, USDC behaves on this Blockchain. USDC, for example, might be needed to smart power contracts on Algorand.
As a result of two significant factors, traditional investors are hesitant to invest in cryptocurrency: lack of regulation and volatility.
As the currency's parent company readily admits, USDC is for those who want to move medium-to-large sums. Stablecoins like USDC could help make cryptocurrencies more mainstream by making it easier for institutional investors to participate.
Have you decided to invest in the crypto world? Then, USD coin is available for you on Tradefada Spot Exchange.
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