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 says the US dollar coin (USDC) will be a key part of broader game-changing changes as adoption of digital currencies grows.
USDC was co-created by Coinbase and Circle as part of the CENTER consortium in 2018, and now Coinbase explains why the stablecoin will stand out from its competition.
“Stablecoins provide a bridge between the traditional financial system and the cryptoeconomy, allowing fiat currencies to exist in a form that can move more freely and efficiently on blockchains.
The value of many cryptocurrencies can fluctuate from minute to minute, so holding an asset like USDC gives buyers and sellers the stability and confidence they need during volatile times.
The stability of USDC comes from the fact that it is backed by a US dollar or an asset of equivalent fair value held in accounts with regulated US financial institutions – the defining characteristic of a stablecoin backed by a fiat (as opposed to crypto-backed or algorithmic). stablecoin).
The company goes on to list several ways the USDC can benefit the global economy:
- Extend financial inclusion to underrepresented aspects of society.
- Efficient and low-cost international asset transfer.
- Act as an “access ramp” to Web 3.0.
- Paying merchants for goods and services.
Coinbase adds that USDC can be useful for retail users as well as developers and large institutions.
At the time of writing, US Dollar Coin is the fourth largest crypto asset with a market capitalization of $53.5 billion.
Coinbase offers a conclusion message on stablecoins and USDC,
“We believe that crypto will help create an open financial system that is both more efficient and fairer, and that USDC will be a key part of this new paradigm.”
We believe that stablecoins like #USDC 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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