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USDC is a type of cryptocurrency known as a stablecoin, which has its value pegged to the U.S. dollar.
USD Coin (USDC) is a type of cryptocurrency known as a stablecoin. It's designed to have a stable value as it's pegged to the U.S. dollar on a 1:1 basis. This means that for every USDC token in circulation, there's a real US dollar held in reserve, making the value of USDC relatively stable compared to other cryptocurrencies like Bitcoin or Ethereum.
USDC was created by CENTRE, a collaboration between Circle and Coinbase, two well-known cryptocurrency companies. The goal of USDC and other stablecoins is to combine the instant processing and security or privacy of cryptocurrency transactions with the volatility-free stable valuations of fiat currencies.
As a stablecoin, USDC provides a buffer against the volatility commonly associated with cryptocurrencies. This makes it useful for people who want to take advantage of the benefits of blockchain technology without exposing themselves to significant price risk.
USDC is often used as a trading pair in cryptocurrency exchanges. Because of its stability, it's a convenient coin for traders to use as a base or quote currency when buying or selling other cryptos.
Like other cryptocurrencies, USDC can be sent anywhere in the world quickly and with low fees, making it useful for international transactions.
Being a cryptocurrency, USDC is programmable. This means it can be used in smart contracts and decentralized applications (DApps) on the Ethereum network and other compatible blockchains.
USDC stands out among stablecoins because of its commitment to transparency and regulation. It's issued by regulated financial institutions, and every month, these issuers provide attestations of the matching USDC and USD reserves conducted by a top-ranking accounting services firm.
However, like all cryptocurrencies, holding USDC does come with some risks, including technological and regulatory risks. For example, if the system that holds the US dollar reserves fails, or if major regulatory changes occur, it could impact the value and stability of USDC.
Using USDC to make a purchase on a crypto-enabled marketplace