USD Coin (USDC) is a type of cryptocurrency that is commonly referred to as a stablecoin. Its name comes from the fact that you can always redeem 1 USD Coin for US$1.00, which gives it a stable price. On the Coinbase platform, eligible customers can earn rewards for every USD Coin that they hold.
Each USDC is backed by one US dollar. This is held in a bank account. USD Coin is an Ethereum token, which means you can store it in an Ethereum-compatible wallet, such as Coinbase Wallet. Also, USD Coin is designed to let dollars move globally from your crypto wallet to other individuals, exchanges, and businesses.
How to get USD Coin
- Sign in to your Coinbase account. If you do not have an account on Coinbase, create one.
- Convert USDC at a ratio of US$1.00 for 1 USDC. This is a completely free process and does not require any fees.
- Send it elsewhere or convert it back into dollars on Coinbase itself.
Centre is the consortium that mints USDC. Collective, it holds US$1.00 for every single USDC. These funds are then held in a special bank account that is constantly regulated and audited.
Unlike conventional US dollars, USD Coin does not require a bank account. It also not require you to live in a particular geography. Moreover, you can send USD Coin around the world at an extremely low cost within just a few minutes. This opens a lot of possibilities to send money internationally.
USDC is a programmable coin. Being a programmable coin unlocks a whole new world of uses and businesses: developers are able to create accounts to store money with one line of code; lending is cheaper, faster, and much more transparent, and so are payments, such as payrolls, global crowdfunding, and donations to charity.
Coinbase participated in building USDC, as it is part of its mission to create an open financial system for the world. Everyone will be able to enjoy the stability of the world’s fiat currency, the US dollar. USD Coin allows both unbanked and under-banked individuals across the world to hold a US dollar-backed asset simply through their mobile devices.
The Ethereum blockchain was chosen for USD Coin because of its status as the market-leading smart contract platform and a strong degree of support from its developers.