USDC is a stable cryptocurrency pegged to the US dollar.
It is managed by Circle, which includes Coinbase and Bitcoin Bitmain among others. Each USDC is supposed to be backed by a real US dollar in Circle's reserves.
Is it absolutely risk-free?
Not quite, as on March 11, 2023, USDC lost its peg to the dollar following the collapse of Silicon Valley Bank the day before.
The value of USDC dropped to as low as $0.87, before rising back to $1 after Circle announced that the $3.3 billion held by SVB would be available.
However, with VISA's ability to make payments in USDC in Latin America, the credibility of this stable coin will greatly increase.
