Coinbase just announced yesterday, that it collaborated with Circle as a co-founder of a new consortium Centre. The organization launches a new collateralized coin, 100% pegged to U.S. Dollar, namely the U.S. Dollar Coin or USDC. The token is in equal proportions to the USD, 1:1, and its price is fixed.
The San-Francisco based exchange aims to fight cryptocurrencies’ volatility with the new digital asset. The conception is to merge cryptos’ advantages with fiat money’s sustainability. USDC is an Ethereum-based token, which operates on an open-source and a transparent network. As Centre presents it, it allows fiat assets to interact with smart contracts for fast and easier transactions.
Coinbase’s representatives honestly say they do not know how stablecoins will perform in a few years from now. But their ambition is to enter the second phase of crypto adoption: utility. If the first one is the investment, where cryptos are used mainly for trading and investment purposes, the second one would be people to start using digital units for actual needs, like sending money online, payment processes, shopping, etc. For that kind of endorsement, USDC is claimed to bring convenience – both digital, decentralized and blockchain-supported and completely stable in price (or, as much as the Dollar is).
The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system,
The official announcement reads.
However, the USDC comes at a moment when lots of crypto traders got disappointed by the idea of the stablecoin. As CryptoFrog reported, Tether’s price suddenly fell which led to a suspicion how stable a stablecoin really is.
Bye, bye, Tether!,
Was one of the first reaction to the new coin in the social media.
USDC is not listed in Coinbase Pro yet but is supported in their ERC-20 tokens wallet.
For a full presentation of the USDC, watch the video announcement by Coinbase.