USDC is an example of a stablecoin, which is a type of cryptocurrency whose value is pegged or backed by stable reserve assets, usually the US dollar (USD). Thus, USDC is a stablecoin whose value always hovers around 1 USDC = 1 USD.
The main difference between stablecoins like USDC and other cryptocurrencies (such as Bitcoin or Ethereum)
- USDC (Stablecoin) Its value is stable because it is backed by US dollar reserves and is usually tightly regulated.
- Volatile Cryptocurrency (Bitcoin, Ethereum) Its value can be very fluctuating depending on the market.
The uses of stablecoins like USDC
- To be a stable transaction tool in the blockchain ecosystem.
- To reduce volatility risk when trading.
- As a store of value when the cryptocurrency market is unstable.
- To facilitate cross-border transfers at lower costs.
Therefore, USDC is a stablecoin that offers value stability and is widely used in the blockchain and digital finance world.