Recently, Coinbase announced that it has started supporting a stablecoin, USDC, which is pegged to the US dollar. In the past, Coinbase, a cryptocurrency exchange headquartered in San Francisco, California, had never allowed buying or selling of any stablecoin, digital currency that is pegged to fiat currency, on its platform. But now the customers are given the option of buying or selling USD coin (USDC) on Coinbase’s website, and even on Coinbase iOS and Android apps.
Different people hold different views for stablecoins. Alan Silbert, executive managing director at INX, founder and CEO of BitPremier, shared his point of view with the BlockPublisher. Regarding the fiat pegged currency, he said:
A fiat “stablecoin” is an oxymoron.
USDC follows the ratio of 1:1 with USD. This means that each USDC on the ethereum platform represents 1 USD and can be exchanged against 1 USD. USDC is the result of the joint effort by Coinbase and Circle. Coinbase and Circle collaborated their technologies to form CENTRE Consortium. CENTRE Consortium, further after its formation, offers the stablecoin USDC to the people.
Coinbase mentions the advantages of its stablecoin by claiming that USDC is easily programmed and is sent quickly. Moreover, it is regarded as a better alternative to the traditional USD that is stored in the banks.
As USDC is easily programmed, developers can effortlessly program it while using the ethereum blockchain.
USDC, even in bulk, is said to be easily sent or received through the ethereum wallet. Customers are offered to manage the sending or receiving process comfortably with Coinbase app.
USDC is using ERC20 standard at the moment that makes it compatible for any app that accepts the ERC20 standard. Apart from dApps, it is also regarded as a good option for buying items on cryptocurrency exchanges.
Coinbase is looking forward to dominating through its stablecoin. The company revealed that in the future, more geographies will be available to its customers. At the moment, Coinbase wallet is fully supporting the stablecoin for people whereas Coinbase Pro is not supporting USDC for now. The company announced that within few weeks, USDC will also be available on Coinbase Pro.