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What is USD Coin?
USD Coin is a digital token created on the basis of the ERC-20 algorithm in 2018. Circle Internet Financial Ltd developed USD Coin in conjunction with the Center consortium. The stablecoin is backed 100% by the dollar in a 1:1 ratio. The project is based on an open source framework developed by Center.
A number of important events preceded the development of the USDC. Among them is the USDT token, which was used by Poloniex before. USDT could not fully cover the needs, requests and functions of the classic stablecoin, as a result of which it could not become an alternative to real assets. USD Coin issuers claim that in their case everything is transparent, because Center is the main regulator. It is licensed to conduct electronic financial transactions, and also works with banking organizations and other partners who keep fiat money as a reserve.
Features of USD Coin
- USDC's parent company is a US registered company of Money Service. This means that it is regulated by the government's financial crime network.
- USDC is being audited by Gant Thornton LLP, one of the top 10 accounting firms in the world. According to a published report in 2019, every USDC coin is backed by real fiat American dollars.
Disadvantages of USD Coin
- There is no original idea, as USDC is not the first coin to try to replace real dollars with digital ones. In fact, we can say that the USD Coin stablecoin is a classic ERC-20 token.