Coinbase says this crypto-asset will be the foundation for a new era of financial services
The leading US-based cryptocurrency exchange says one dollar-pegged stablecoin will play an important role in the transforming financial landscape.
In a new blog post, Coinbase says that the US Dollar Coin (USDC) will be a key component of the broader revolutionary changes as the use of digital currencies expands.
USDC was created by Coinbase and Circle as part of the CENTER Consortium back in 2018, and now Coinbase is explaining why the stablecoin will stand out from the competition.
“Stablecoins provide a bridge between the traditional financial system and the crypto-economy, 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 in times of volatility.
The stability of USDC comes from the fact that it is backed by one US dollar or asset of equivalent real value held in accounts at US regulated financial institutions – the defining characteristic of a fiat-backed stablecoin (as opposed to a crypto-backed or algorithmic one). stablecoin).”
The firm goes on to list several ways USDC can benefit the global economy:
- Extend financial inclusion to underrepresented parts of society.
- Efficient and affordable international transfer of assets.
- Acts as an “on-ramp” to Web 3.0.
- Pay for goods and services to sellers.
Coinbase adds that USDC can be useful for retail users as well as developers and larger 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 closing message about stablecoins and USDC,
“We believe crypto will help create an open financial system that is both more efficient and fairer, and that the USDC will be a key component of this new paradigm.”
?STABLE MOUTH 101?
We think stablecoins like #USDC can be the basis for innovation in a new era of financial services.
But what are stablecoins? Why do they matter? Let’s dive in…???
— Coinbase (@coinbase) 15 August 2022
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