### What is USDC?
USDC (USD Coin) is a stable digital currency (Stablecoin) pegged to the U.S. dollar, where 1 USDC = 1 dollar always. It was launched in 2018 by Circle in partnership with Coinbase, and operates on networks like Ethereum and Solana.
### Advantages of USDC
✅ Fully backed: For every USDC issued, there is one US dollar in regulated bank reserves.
✅ Transparent: Monthly audited reports on its financial reserves are published.
✅ Fast and cheap: Instant global transfers via blockchain, costing less than bank transfers.
✅ Compliant with regulations: Subject to financial regulation in the United States.
### How is it used?
- Trading cryptocurrencies: A pair like BTC/USDC.
- International money transfers: No high bank fees.
- Paying salaries or bills: On some platforms that accept it.
### The difference between USDC and USDT
| Standard | USDC | USDT (Tether) |
|--------------|----------|----------------|
| Transparency | High (Regular audits) | Limited (Criticism regarding reserves) |
| Issuer | Circle + Coinbase | Tether Limited |
| Regulatory acceptance | Better (Licensed in the U.S.) | Faces reservations from governments |
### Potential Risks
- Freezing funds: In rare cases, the currency can be frozen (as happened with some addresses after U.S. sanctions).
- Its reliance on the traditional banking system: If reserves face a crisis, its value may be affected.
Summary:
USDC is a safe and reliable option for dealing with a stablecoin in the crypto world, especially for those interested in regulatory compliance and transparency. It is considered a safer alternative to USDT due to its association with regulated financial institutions.