What is the USD Coin?
- The USD Coin (USDC) is a type of crypto currency described as “price stable.”
- It is always possible to exchange 1 USD Coin for US $ 1.00, which gives you a stable price.
- On Coin base, eligible customers can earn rewards for every USD Coin they own.
- Customers with a bank account in US dollars can always exchange 1 USDC for US $ 1.00, which means that its price is stable.
Backing of the US dollar
- Each USDC is backed by one US dollar, reserved in a bank account.
Powered by Ethereum
- The USD Coin is an Ethereum token so that digital currency can store in a compatible wallet, such as the Coinbase wallet.
- The USD Coin is designed for dollars to move globally from your cryptocurrency wallet to other conversions, businesses, and people.
How to get USD Coins?
Step 1: Create or log in to a Coinbase account
Step 2: Convert your funds to USDC, at a value of US $ 1.00 for 1 USDC without commissions
The, Step 3: Send USDC to other destinations or convert back to dollars from Coinbase.
USDC, the arrival of a new stable coin
- Stablecoins or stable coins are nothing new in the crypto world.
- The arrival of Tether (USDT) marked a before and after in this sense, allowing fast transactions between those who use cryptocurrencies.
- Such as Bitcoin or Ethereum and want to make quick changes to a “less volatile” currency on exchanges.
- However, Tether had severe problems on his shoulders.
- In principle, it was slow, expensive to mobilize, and unsuitable for the future of decentralized exchanges.
- As it ran on top of OmniLayer and Bitcoin (although a version of USDT on Ethereum has existed since September 2017).
- Additionally, USDT has transparency policies that many people see as unacceptable.
- Especially regarding audits that verify that Tether effectively has in its possession the expected 1: 1 backing for each USDT token issued.
More about USD Coin
- On the other hand, the issuance of Tether tokens is only to companies or private parties.
- It meets the acquisition requirements and only in amounts more significant than USD 100,000.
- These weaknesses led various industry giants to find a way to cope and take the emerging market that followed from their hands.
- It is how Coinbase and Circle joining their efforts and creating Center, a company that can be in charge of managing USDC.
- Thus, USDC can be a new stable coin anchors 1: 1 with the dollar, an ERC-20 token working on Ethereum (ETH).
- Although Ethereum is not significantly faster than Bitcoin, its scalability and the way its commissions are managing making this new stable coin much more agile and economical.
- Not only that, because USDC was an ERC-20 token, it can easily integrates into DApps and DEX that creates on Ethereum, something that USDT can not do at the time.
- It is completed the birth of USDC on September 26, 2018.
- At which time, it creates the USDC smart contract, and its circulation in the crypto space begin.
- Additionally, USDC from the beginning guaranteed broad development access around this cryptocurrency, which we can see on this GitHub.
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