All You Need to Know About USD Coin (USDC)

What is USDC?

USDC is a United State Dollar Coin launched in 2018, it is also known as stablecoin — the value of which never fluctuate and remain stable. We call it a stablecoin because the value of one USDC is equal to one U.S Dollar which is designed to be stable to achieve price stability.

In comparison with crypto, the prices fluctuate so much, but with USDC stablecoin we know what the value of that dollar tomorrow. USDC is a digital currency that is not issued by the U.S. government.

For Example

If you want to give 20 dollars or 20 USDC to your friends, you know the value of that US dollar will remain the same and not fluctuates, if you take back that USDC from your friend after some days then because of the stability of USDC you do not need to bear any type of loss.

Benefits of USDC

● It merges the benefits of the dollar with the US global reserve currency.

● Through blockchain, it provides 24/7 access, with a fast transfer of currency.

● USDC has the ability to send both macro and micropayments.

Ever wondered how USDC maintains a 1:1 peg with the U.S. dollar?

For example, if you buy 1 USDC coin with a fiat currency, then it is first deposited into one U.S. dollar and a new USDC is minted. Now, if you sell a USDC for a fiat currency, then the USDC is burned; the fiat money is transferred back to your bank account.

How does USDC work?

To convert your US dollar into USDC you need to follow 3 things:

● Register an account in USDC with a partner with whom you exchange the currency that supports USDC.

● Deposit your currency which is not backed by a commodity, with the exchange in your account through a bank account.

● Now you can buy USDC with a government-issued currency that is not backed by any commodity or can say through fiat currency.

Final Thoughts

USDC is a stable coin but purchasing USD coin does not provide any investment returns for the buyer because they are stable coin; which means their price won’t increase as USDC never fluctuate in comparison with cryptocurrency or any other digital currency.

It is just made to help cryptocurrencies be more user-friendly by providing a solution for people and businesses to exchange money in minimum time by eliminating the need for any middlemen and providing better access to the public.