Cryptocurrency Q&A
What is the US dollar backed cryptocurrency?
What is the US dollar backed cryptocurrency?
Alessandra
Wed Nov 20 2024
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5 answers
768
The US dollar backed cryptocurrency, commonly known as a stablecoin, is a digital asset pegged to the value of the USD. It aims to provide stability and reduce volatility compared to other cryptocurrencies. One example is USDT, issued by Tether, which maintains a 1:1 ratio with the US dollar and is used for global payments and cross-border transactions.
5 answers
EnchantedNebula
Fri Nov 22 2024
This stability is achieved by backing each USDC with U.S. dollars.
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BonsaiGrace
Fri Nov 22 2024
USD Coin (USDC) represents a unique concept in the cryptocurrency world.
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GangnamGlitzGlamour
Fri Nov 22 2024
It functions as a stablecoin, which means its value is designed to remain stable.
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GangnamGlamour
Thu Nov 21 2024
Additionally, USDC can also be backed by dollar-denominated assets.
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Eleonora
Thu Nov 21 2024
Examples of such assets include U.S. Treasury securities, which are considered highly secure.
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