What is USD Coin?
USDC is a wholly supported US dollar stablecoin. USD Coin with the symbol [USDC] has become the first cryptocurrency to enter the world's largest trading platform, Coinbase, based in San Francisco.
As the English word indicates, stablecoin means 'stable currency,' and each one is equivalent to 1: 1 of a US dollar on the Ethereum blockchain as an ERC-20 token. Each USDC token is 100% legally backed by a single USD held in accounts exposed to regular public reserve reporting.
The supporting technology behind the USDC was developed in collaboration between Coinbase and the Circle platform. More and more exchanges use it, among them Coinbase, Poloniex, Binance, OKEx, Huobi, or Kucoin, among others. Customers who have a dollar in their bank account can always exchange 1 USDC for one dollar, so it is assigned a stable price. Each USDC is upheld by one US dollar, which is deposit into a bank account.
How do I know that USD Coin will retain its value?
Center, the trading company that mints USDC, collectively deposits one dollar for each USDC. These funds are deposited into a particular bank account that continually monitors and audits.
What are the advantage of the digital dollar?
Unlike regular US dollars, a bank account is not needed for USD Coin, and neither is to live in a specific geographic region. You can also send USD Coin anywhere in the world for a low cost in just a few minutes, so this opens up a world of possibilities.
A programmable dollar means that it is programmable and puts a whole new world of applications and businesses at your disposal: developers create accounts to save money with a simple line of code, making it faster, cheaper, and more transparent. Also, payments, including payroll, are more affordable and crowd-sourcing and transparent and consistent donations.
Why is USD Coin an Ethereum token?
USD Coin is an Ethereum token so that it can be stored in an Ethereum-compatible wallet, such as the Coinbase wallet. The Ethereum blockchain was chosen for USD Coin for its status as a market-leading smart contract platform and good technical support from developers.