🧊 USDC: The Stablecoin that can freeze you
You have probably already heard that the $USDC is backed 1:1 with the dollar and is regularly audited. But what almost nobody mentions is: it can also be frozen — literally or even erased from your wallet.
Circle, the issuing company of USDC, has total control over the smart contract that governs the stablecoin. This means that, unlike Bitcoin, your $USDC can be frozen or erased by the company's decision.
In the USDC code, there are administrative functions such as:
function blacklist(address user) – prevents an address from using USDC.
function freeze(address user) – blocks all USDC transactions from an address.
function wipeFrozenAddress(address user) – erases USDC from a frozen address.
Yes, that's right: the company can erase your funds if your address is put on the 'blacklist'.
✅And this is not a theoretical power — it has already been used. In 2020, Circle froze $100,000 of a user after a request from authorities, due to suspicion of involvement in fraudulent activities.
🔎 With this I ask you: is this security or censorship disguised as protection? Why should there be a crypto that can be blocked or even erased from your account by a centralized institution?
The truth is that Circle is subject to the rules of the U.S. financial system. It is registered, audited, and follows anti-money laundering (AML) and counter-terrorism financing (CFT) laws.
This makes USDC more reliable for companies and institutions, which need to operate within the law — with traceability and reversibility, if necessary. Additionally, it clarifies the rules regarding its use, ensuring predictability for businesses.
🤔But what is the advantage for you?
For regular users, if your stablecoin is stolen and the case goes to court, it can be recovered.
But it also brings risks: a mere misinterpretation or indirect involvement can lead to your funds being frozen.
Stablecoin is a way to send money abroad more cheaply, as the president's son recently said in Dubai, traditional banks are outdated and charge a lot for it.
👇🏻Now the final question remains: is the stablecoin, even if it is not decentralized, worth ignoring an accessible and functional alternative for sending money like the $USDC ? #USDC✅
