The leading US-based cryptocurrency exchange says a dollar-pegged stablecoin will play an important role in the changing financial landscape.
In a new blog post, Coinbase claims that US Dollar Coin (USDC) will be a key component of the broader revolutionary changes as the adoption of digital currencies expands.
USDC was co-created by Coinbase and Circle as part of the Consortium CENTER in 2018, and now Coinbase explains why the stablecoin will stand out from its competitors.
“Stablecoins provide a bridge between the traditional financial system and the crypto economy, allowing fiat currencies to exist in a form that can move more freely and efficiently on blockchains.
The value of many cryptocurrencies can fluctuate by the minute, so holding an asset like USDC gives buyers and sellers the stability and confidence they need in times of volatility.
The stability of the USDC comes from the fact that it is backed by a US dollar or an asset of equivalent fair value held in accounts with US regulated financial institutions, the defining characteristic of a fiat-backed stablecoin (as opposed to a guaranteed stablecoin). from cryptocurrencies or stablecoin algorithms). “
The company goes on to list several ways the USDC can benefit the world economy:
- Expand financial inclusion to underrepresented aspects of society.
- Efficient and economical international transfer of assets.
- Acting as an “access ramp” to Web 3.0.
- Paying for goods and services to merchants.
Coinbase adds that USDC can be useful for retail users, developers, and larger institutions.
As of this writing, US Dollar Coin is the fourth largest crypto asset with a market cap of $ 53.5 billion.
Coinbase offers a conclusion Message on stablecoin and USDC,
“We believe that cryptocurrencies will help create an open financial system that is both more efficient and fairer and that the USDC will be a key component of this new paradigm.”
? STABLECOINS 101?
We believe stablecoins are popular #USDC it can be the foundation for innovation in a new era of financial services.
But what are stablecoins? Why do they matter? let’s dive in … ???
– Coinbase (@coinbase) August 15, 2022
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