Table of Content
- What Makes the USD Coin Special?
- How Many USD coins are in Circulation?
- How Secure is the USD Coin Network?
- Where Can I Purchase USD Coin?
USD Cryptocurrency (abbreviated USDC) is a stablecoin linked to the US dollar at a 1:1 ratio. Every unit is backed up by $1 in reserve, which is kept in a combination of cash and short-term US Treasury bonds. According to the Centre consortium, which created this instrument, USDC is issued by authorized financial institutions.
The stablecoin first became available in limited quantities in September 2018. Simply put, USD Coin is “digital money for the digital age,” and the stablecoin is intended for a future where cashless transactions are becoming more prevalent.
Several use cases for the USD Coin have been revealed. In addition to offering a haven for crypto traders during times of volatility, those behind the stablecoin claim it can enable companies to accept payments in digital assets, shaking up various industries such as decentralized finance and gaming.
The overall aim is to build an ecosystem in which USDC is accepted by many wallets, exchanges, service providers, and dApps.
Two individuals founded the Centre Consortium. Circle, a peer-to-peer payment services business, and Coinbase, a bitcoin exchange, are two. Other cryptocurrency projects are welcome to join this coalition.
Circle co-founders Jeremy Allaire and Sean Neville explained the USDC concept in a blog post: “We believe that an open internet of value exchange can transform and integrate the world more deeply, eventually eliminating artificial economic borders and enabling a more efficient and inclusive global marketplace that connects every person on the planet.”
Circle and Coinbase together announced a significant improvement to USDC’s technology and smart contract in 2020. These improvements make it simpler to use USD Coin for daily payments, commerce, and peer-to-peer transactions.
What Makes the USD Coin (USDC) Special?
The stablecoin industry has grown very competitive in recent years, but USD Coin has sought to outperform rivals in many ways.
One of them is transparency and providing consumers the confidence that they would be able to withdraw 1 USDC and get $1 back without any problems. To that aim, it is said that a large accounting company has been entrusted with checking the amounts of cash kept in reserve and ensuring that this corresponds to the number of tokens in circulation.
Unlike some other cryptocurrency startups, Circle and Coinbase have attained regulatory compliance, which has paved the path for worldwide growth. Both initiatives are also well-funded, providing stability to the stablecoin.
How Many USD Coins are in Circulation?
It’s impossible to provide a precise figure here since, in principle, the amount of USDC that may exist is infinite. More coins are produced to meet the demand when someone wants to buy one with their hard-earned dollar.
Several reasons have contributed to USD Coin’s meteoric rise in popularity throughout the years, particularly in 2020. One of them is the rapid and fast increase in the popularity of decentralized financing. Given its role as an onramp to the larger ecosystem, USDC is a frequent sight on many DeFi protocols.
How Secure Is the USD Cryptocurrency Network?
The USDCs in circulation are all ERC-20 tokens that can be discovered on the Ethereum network. One of the benefits is that it may then be integrated with Ethereum-based applications. As previously stated, security and trust in this stablecoin are provided by demonstrating that US dollars are securely kept in reserve.
Where Can I Purchase USD Coin (USDC)?
Given its involvement in developing this stablecoin, Coinbase is one of the most passionate exchanges that provide USDC. USD Coin may also be bought and sold on Poloniex, Binance, OKEx, and Bitfinex and decentralized exchanges like Uniswap. However, before investing in USD Crypto head here to compare ALL Crypto’s prices and explore the best opportunity for you!