$USDC
The foremost highlight in any discussion on USDC would focus on what is USD Coin and how it works. US Dollar Coin or USDC is a stablecoin with a 1:1 pegging ratio against the actual US Dollar. In simple words, one US Dollar Coin or USDC is equal to one actual US Dollar. It can offer considerable stability in the market. Although designed initially as an ERC-20 token, the USD Coin has expanded effortlessly into the Solana and Algorand blockchain networks. Why did the creators of USDC think of such a stablecoin, and who were they?
Reasons for Creating USDC
The introduction to USD Coin or USDC is incomplete without reflecting on the reasons for introducing the stablecoin. Was USD Coin developed with the sole objective of dealing with price volatility? As a matter of fact, the underlying reasons behind creating USDC also focus on the sophistication of systems alongside the volatility in cryptocurrency market. The sudden changes in asset prices can be quite challenging for new investors. On the other hand, stablecoins such as USDC can offer a credible store of value alongside avoiding the volatility evident in cryptocurrencies.
In addition, the outline of USD Coin explained in detail also showcases another important reason for coming up with USDC. Generally, the UI and features offered by cryptocurrencies can be complicated for new investors. Unless you are a technically skilled user, you are more likely to encounter confusion in using cryptocurrencies. USDC was created for an easier onboarding process to help users familiarize with cryptocurrencies easily.
