The USDC is a stable coin where each 1 USDC is pegged to 1 USD fiat dollars. USDC is a well-backed bridge to allow for the flow of money from fiat currencies into crypto. Provided the algorithm performs and it remains collateralised by cash and US Treasury Notes etc it can act as a safe haven for crypto traders and investors.
What is USDC?
USDC is a fiat-collateralised stablecoin – meaning that each USDC token in circulation is backed by a US dollar.
Founded and launched in 2018 by the Centre Consortium, comprised of a peer-to-peer payment services company Circle and the well known Coinbase crypto exchange.
USDC has become one of the most traded crypto currencies in the world and has one of the highest market caps.
It is favoured by many people in crypto over its rival stablecoin USDT because it is better backed by more US reserves, offers greater transparency into its operations, and is subject to greater regulatory oversight.
USDC is listed on almost all crypto exchanges globally.
What is the purpose of USDC?
USDC is a stablecoin intended to be "digital money for the digital age."
It acts as the bridge for onboarding fiat money (US Dollars or AU Dollars etc) into crypto.
As such it is very useful for remitting money globally over the internet lightening fast, with very low fees compared to using the conventional banking system and international money transfer services which were built on SWIFT.
USDC can also allow businesses to accept payments in digital assets, rather than fiat money.
For traders and investors, stablecoins like USDC also act as a safe haven to retreat into if Bitcoin, Ethereum or other altcoins are too volatile – without selling out of position all the way back into fiat money.
Finally, stablecoins such as USDC are also heavily used for crypto staking activity, giving investors a solid and predictable return, without having to be overly concerned about the movement of the underlying coin or token.
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