$USDC USDC (USD Coin) is one of the stablecoins designed to be pegged to the US dollar at a 1:1 ratio. This means that every 1 USDC is supposed to be backed by 1 US dollar held in bank accounts or equivalent assets. Here are its importance:
Importance of USDC:
1. Price Stability
Unlike volatile cryptocurrencies like Bitcoin or Ethereum, USDC maintains a nearly stable price, making it suitable as a medium of exchange or store of value.
2. Ease of International Transfers
USDC can be sent to anyone in the world quickly and at a low cost compared to traditional bank transfers.
3. Use in Decentralized Finance (DeFi)
USDC is widely used in decentralized finance protocols such as lending, borrowing, and trading without intermediaries.