As if it were the world of superheroes, In the universe of cryptocurrencies, each one of them seems to be its nemesis third and vice versa. Each digital currency has at least one – if not many more as in the case of Ethereum – that are called “killers” and that, in many cases, are born as a consequence of the deficiencies of another or of possibilities of improving online currencies already existing.
In the case of USD Coin, a stablecoin or stable currency to use, his nemesis, as we will now see, is Tether. They are those digital currencies that are referenced to the dollar parity, 1: 1 against each greenback, hence the chances of hitting an arch-million dollar rise in price is ruled out.
His cryptographic abilities are others. In the case of USD Coin or in its acronym USDC It is a virtual currency that bursts the possibility of volatility entering its price. Created by Circle and Coinbase, as the main operators and under their umbrella, it has become one of the fastest growing digital currencies.
It is backed by the Financial Crimes Enforcement Network, the FinCEn of the United States Department of the Treasury. and each token for a dollar that is held in reserve, mainly verified between cash and short US Treasuries. And what is more important, with periodic authorship that supports these guarantees.
That is one of his main differences with Tether, the real and transparent verification of the assets behind the tokens, in reports that according to Circle, presents Grant Thornton on the balances of reserves that support the USDC.
One of the maxims that most concern investors about cryptocurrencies is their regulation and, according to the experts, the next regulation will first endorse stablecoins such as USD Coin. It also boasts the largest stablecoin ecosystem, as an open standard and smart public contract.
But not everything is rosy, because the experts of the crypto market understand that being a centralized stablecoin and that means that its creators have control over the most significant decisions, if not all, from USDC.
USC Coin Powered by ERC-20 Smart Contract on Ethereum Blockchain and it also features compatibility with other blockchains, case of Algorand ASA, Solana SPL, active Stelar and Tron TRC-20. Thus, it supports and integrates any smart token contract with any of these applications. And as we have said, it has entered the Olympus of the most capitalized on the market, the eighth for being more concrete with a market value right now around 36,200 million euros.
It is basically used to make, among others, payments, just as Visa did since the end of last March, becoming the first of the main payment networks to settle transactions in this cryptocurrency. He did it through one of his partners, Crypto.com one of the largest platforms in the world. And all, according to its defenders, faster and cheaper than Tether.