Review on USD Coin by Sergio Daniel Delgado
USD Coin (USDC)
Different currencies fulfill different functions in the market. Thus, for example Tether, would have as its objective being an intermediary in transactions between cryptocurrencies. Reason why It is today a crucial element in the crypto market.
For its part, USD Coin has another vision about its role in the economy. Prioritizing the development of a more efficient mechanism for conducting financial operations. Than in building a Tether-style stablecoin.
And, as we have explained on other occasions, conducting international transactions is an extremely expensive process. Well, within it, a large number of actors, each charging a commission for their intervention in the operation. A situation that the CENTER Corsotium was aiming for.
In fulfilling its objectives, we can say that USD Coin has managed to penetrate within the crypto community. . Of course with the support of the institutional power that both Circle and Coinbase have put behind the coin.
In this way, it is possible to work on a solution for the democratization of international finance, through the use of Blockchain technology. Well, with the use of USD Coin, international operations can be carried out much easier and faster than with traditional fiat money.
Thus, to send and receive USD Coin, it is not necessary to have a bank account. What opens the doors of financing to all poor families and individuals around the world, and which is not they find themselves banked.
USD Coin is probably one of the most useful cryptocurrencies in the world. And is that, the ERC-20 token created by the CENTER Consortium, creates functions that facilitate International financial transactions leveraged USDC.
Which raises a question, is it positive that there are two virtual currencies like XRP and USDC with practically identical targets in the market? Before which we must consider that without doubt if it is positive. Well, if there is something for which it is crucial that there is a wide offer of cryptocurrencies, it is for the competition between them, which advances the sector as a whole.
Pros
- the value of USD Coin is backed today by a reserve fund of dollars equal to the amount of USDC issued. This reserve would be in a special bank account, audited and constantly monitored.
- a very versatile currency, and with a safe value for conducting international operations. To which contributes the weight of two crypto world giants like Coinbase and Circle, which drive adoption of USD Coin by users.
- The USDCs are the product of the will of 2 very important organizations, the cryptocurrency having been promoted by their participation. Thanks to which, USD Coin would have support within the two founding organizations of stablecoin, your USDC can be stored within the Coinbase or Circle platforms.
Cons
- Despite the fact that USD Coin is rated as a stablecoin, its main competition is not in this sector. Well, the objectives set by USDC are totally different from those of the main stablecoins in the world. Therefore, the project that could most resemble the functions offered by USD Coin, is Ripple's virtual currency, the XRP. Well, this currency is dedicated to facilitating transactions international using Blockchain technology. What puts them within reach of anyone around the world. However, taking the XRP role today would be an extremely difficult process to complete. Despite which, when observing the short time that USDC has been in the market, it can be Consider that it has reached a projection and importance much greater than the period in which the currency has been active within the crypto market.
