USDC: What risks and challenges does the stablecoin face in 2025? ⚠️🚧
Despite its stability and transparency, USDC in June 2025, like any major financial asset, faces certain risks and challenges.
Regulatory uncertainty: While the regulatory landscape is becoming clearer, any unexpected changes in legislation could affect the issuance, trading, and use of stablecoins.
Counterparty risk: USDC, being a centralized stablecoin, still relies on the issuer (Circle) to maintain adequate reserves. Although Circle is a regulated company, counterparty risk cannot be completely eliminated.
De-pegging (temporary disconnection): The incident with Silicon Valley Bank in 2023 demonstrated that even USDC can temporarily lose its peg in times of systemic crisis.
Competition: Despite growth, USDC faces stiff competition from other stablecoins, especially USDT, as well as the emergence of new types of digital money, such as tokenized money market funds.
Technological risks: Risks associated with the security of blockchains and smart contracts, although being mitigated through audits.
Awareness of these risks allows users and investors to make informed decisions when using USDC.