By market value, the second largest stablecoin is already a multi-blockchain project. USDC, on the other hand, will soon be found practically everywhere. It will soon be available in “Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron,” according to Coindesk. Since USDC is already supported by Ethereum, Algorand, Stellar, and Solana, that brings the total to 14.
Tether or USDT, the most popular stablecoin, is only available in eight of them. Tron’s version of USDT is now the most widely used stablecoin.
With that in mind, CENTRE said:
“We anticipate that USDC on these blockchain platforms and multichain protocols will further accelerate the use of the world’s fastest growing digital dollar currency.”
USDC is managed by the CENTRE consortium, which is a joint venture between Coinbase and payments processor Circle. “A draft announcement from USDC administrator CENTRE acquired by CoinDesk,” according to the source.
What Is (USDC) And How Does It Work?
For this, we have to go back to the academy. Coinzilla informs us:
USDC is one of the fastest-growing stablecoins pegged 1 to 1 to the US Dollar.
What is more remarkable is that Circle, the company that developed the stablecoin, is actually holding the amount of money required for backing the USDC in circulation.
That is unquestionably a shot at USDT. Tether’s audit and legal difficulties have long been a source of debate in the cryptocurrency world. Will they be able to back all of the Tether they’ve created? A vexing question that is more difficult to answer than you might expect.
For what it’s worth, USDC’s independent audit from April is public and states:
USD Coin (“USDC”) tokens issued and outstanding less tokens allowed but not issued (218,807,037) and less blacklisted tokens = 14,697,267,257 USDC
US Dollars held in custody accounts are at least equal or greater than the USDC tokens outstanding at the Report Date and Time.
To return to Coinzilla’s academy, the stablecoin has the following characteristics:
In essence, USD Coin is an ERC-20 token that functions through the Ethereum Network. Nowadays, USDC transactions can also be settled through Algorand, Solana, and Stellar’s infrastructures.
Since the launch of USDC 2.0, the payment process is simplified, the gas fees being paid directly in USDC.
In 2021, stablecoins are expected to rule the United States.
The US government’s formal love affair with stablecoins began in January, when Circle’s Jeremy Allaire revealed that “the largest US banking regulator has new guidance permitting US banks to use public blockchains and dollar stablecoins as a settlement infrastructure in the US financial system.” “Decentralized, permissionless, open source, and internet mediated software is literally becoming the cornerstone for not only the US financial system, but the world economy,” he claims.
3/ The new interpretive letter establishes that banks can treat public chains as infrastructure similar to SWIFT, ACH and FedWire, and stablecoins like USDC as electronic stored value. The significance of this can’t be understated.
— Jeremy Allaire (@jerallaire) January 4, 2021
Randal K. Quarles, the Federal Reserve’s Vice Chair for Supervision, recently raised the stakes significantly:
In my judgment, we do not need to fear stablecoins. The Federal Reserve has traditionally supported responsible private-sector innovation. Consistent with this tradition, I believe that we must take strong account of the potential benefits of stablecoins, including the possibility that a U.S. dollar stablecoin might support the role of the dollar in the global economy. For example, a global U.S. dollar stablecoin network could encourage use of the dollar by making cross-border payments faster and cheaper, and it potentially could be deployed much faster and with fewer downsides than a CBDC.
Will stablecoins like as USDC and USDT be able to take the place of the Digital Dollar project? Could they be used instead of CBDCs? We’ll have to wait and see what happens.
