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USD Coin (USDC) 101: A Stablecoin Tied to the US Dollar

USD Coin, or USDC is a stablecoin that was created by a company called Circle.

USD Coin (USDC)

USD Coin is a cryptocurrency that has a 1:1 ratio to the United States Dollar and can be stored in wallets like Coinbase. The idea behind USD Coin is to allow people to send money quickly and easily all over the world without worrying about currency exchange rates and high transaction fees – this will save you time and money!

In this article we’ll explain everything you need to know about USD Coin (USDC) including:

  • What is USD Coin (USDC)?
  • Where You Can Buy and Store USDC
  • How To Use USDC

Background

USD Coin was created by Circle, an app that allows users to send money from their debit or credit cards. Circle aims to make cryptocurrency more approachable and accessible with USD Coin.

The first United States dollar stablecoin was Tether (USDT), which was created in 2015. USD Coin was the second stablecoin to be created in the United States.

USDC is trustworthy unlike Tether (USDT) which recently was fined by the New York Attorney General’s Office for not having USD backing all of their tokens. This means that every Tether token is not backed by real dollar like it claims to be, which makes it unreliable and untrustworthy. It was found out that Tether did not have the amount of money they said they had in their bank accounts.

Earning Interest on USDC

Another really interesting use of stablecoins like USD Coin (USDC) is to earn interest on them. You can hold USDC and earn interest by loaning it to an organization that provides this service.

The interest you earn is based on the amount of USDC and for how long you’re willing to lend your coins out. You can do this through a company like BlockFi or Celsius – which basically works as a savings account where instead of earning interest in dollars, you get to earn interest in the stablecoin.

USDC For Remittances and International Transfers

The value of USD Coin when it comes to remittances is that it is very stable and has low transaction costs. If you used Bitcoin instead of USD Coin, then you would have to deal with the massive fluctuations in price that cryptocurrencies are known for.

For example if one Bitcoin had a value of $1000 on Monday and was worth $2000 on Tuesday, it could make remittances difficult because your family might not be able to buy as much food or other essentials.

This is why people are turning to stablecoins like USD Coin (USDC). Instead you can send your money – in a very cheap and efficient way – through the blockchain without worrying about how much it’s worth when it arrives at its destination. The person receiving USDC will know that they will receive exactly $100 USD no matter how much the price changes in America or Mexico.

Conclusion

In conclusion, USD Coin is a great stablecoin because it’s an ERC-20 token tied to the United States Dollar. It has low transaction fees, easy accessibility, and transparency – everything you could want in a cryptocurrency! We recommend using USD Coin if you want a stablecoin to invest in, to send international remittances, or if you want a stable cryptocurrency that won’t change its value overnight.

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