Michele
Sun May 12 2024
|
6 answers
1381
Is USDC backed by real dollars?
I've been hearing a lot about USDC, and it's supposed to be a stablecoin. But I'm still a bit confused about its backing. So, could you clarify for me, is USDC really backed by real dollars? I've read that it's supposed to maintain a one-to-one peg with the US dollar, but I want to know how exactly that works. Is there a reserve of US dollars held somewhere that backs every USDC token in circulation? And how do we know that the reserve is actually there and hasn't been tampered with? I'm just trying to understand the mechanics behind it and how reliable it is as a store of value. Thanks for your help!
