$USDC

USDC temporarily lost its peg during the SVB event (03/2023) due to Circle having $3.3B deposited at Silicon Valley Bank. However, the peg was quickly restored after the Fed intervened.

• Some people in the crypto community prefer absolute decentralization and do not trust centralized stablecoins like USDC.

• Compared to Tether (USDT), USDC can be frozen at the request of the government – hence some view it as “controlled garbage coin.”

⸻

🧠 Conclusion

USDC is a safe, transparent, and reputable stablecoin.

However, it is a centralized stablecoin, so if you pursue absolute decentralization, you may consider using other stablecoins such as:

• DAI (MakerDAO – mostly backed by USDC but has more decentralization),

• LUSD (Liquity – backed by ETH, 100% decentralized).