However, other Malawians argued the devaluation should have happened a long time ago as it was obvious that the central bank price did not reflect the kwacha value in the real world. It first did so in May last year in order to prop up dwindling foreign currency reserves, pressured by rising commodity prices and declining dollar revenue from tobacco exports. The central bank announced it would allow 10-year Japanese yields to climb as high as 0.5 percent, compared with 0.25 percent previously.
Circle has committed to maintaining transparency and regulatory compliance in its operations, regularly publishing the above-mentioned attestation reports conducted by auditing firms. These reports verify that the number of USDC tokens in circulation matches the amount of US dollars held in reserve bank accounts. This process is designed to instil confidence in users that each USDC token is indeed backed by a corresponding US dollar.
Who Founded USD Coin?
For example, today’s price of one bitcoin (BTC) may not remain consistent in a month. USDC is a relatively stable asset in a volatile crypto world, so you don’t have to worry about losing all the hard-earned money you’ve invested. At Worldcoin, we aim to share our cryptocurrency with the world by offering a free share to each individual on the planet. USD Coin and Tether (USDT 0.01%) are the largest stablecoins by market cap. If you’re planning to buy a U.S. dollar stablecoin, you may be wondering which one you should choose, or if there’s even a difference between them. Now, the governance of USDC depends on the CENTRE consortium, including Coinbase and Circle.
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, https://www.tokenexus.com/ recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins or digital assets. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.
Enjin Coin
USD Coin is also available to trade on a number of other popular cryptocurrency exchanges, including Binance, Bitfinex, Coinbase, Crypto.com, Kraken, and Uniswap. The answers to “how does USDC work” serve a clear impression of how it is one of the best stablecoins. However, the USD Coin is not the first or the most popular stablecoin backed by the US Dollar. Tether is one of the prominent competitors of the USDC stablecoin and has been around for quite a long time.
The identity of USDC as a stablecoin and its unique features show what it is capable of. It serves as a stable digital asset, which you can use in different unique ways when compared with other cryptocurrencies. Here are some of the notable use cases of US Dollar Coin, which would gain momentum in the future. One of the common highlights in ‘what is USD Coin’ focuses on the speed of transactions. Generally, you would have to wait for a long time when you want to send US Dollars to other people and institutions.
How to buy USD Coin
This sharp fall in gas and electricity prices benefits the economy overall and should mean the region can avoid the harsh recession that was expected. Morgan Research expects euro/dollar to approach 1.10 in March 2023, before declining to 1.08 in September 2023. “The confluence of factors that had proved so supportive of the dollar What is USD Coin earlier in 2022 has since inverted. U.S. investors who are worried about inflation can seize the value of their money by investing in USDC. You can also use the USD coins to represent liabilities and trends. If you look at how notoriously the price of the Cryptocurrencies like Bitcoin and dogecoin fluctuates, USDC is much safer.
- Speaking of exposure to the US Dollar, the outline of “how does USDC work” must also reflect on the ease of cross-border payments.
- Therefore, we are not responsible for the investment decision in USD Coin and the resulting loss.
- Failing that, consider using one of our top software wallet picks for smartphones and PCs.
- Did you know stablecoins carry around 14% of the entire crypto economy?
- They are pegged to fiat currency, meaning they should always be on a one-to-one basis with the US dollar, as an example.
USD Coin can work as ideal leverage for capitalizing on the features of DeFi applications for lending your crypto assets. For example, lending USDC could help you earn more in comparison to traditional savings accounts. On top of it, the US Dollar Coin also offers the flexibility for investing your funds rather than locking them up in one account. As of now, Bitcoin and Ether seem to have the upper hand in the crypto world, albeit with the limitation of price volatility. Therefore, it is practically impossible to consider such assets for regular crypto payments.
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