Cryptocurrency Q&A
Which stablecoin is backed by the US dollar?
Which stablecoin is backed by the US dollar?
KimchiQueenCharmingKiss
Tue Aug 06 2024
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5 answers
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Could you please elaborate on which stablecoin is specifically backed by the United States dollar? I'm curious to know if there's a particular cryptocurrency that maintains its value by being pegged to the USD, and if so, what are the key features and benefits of investing in such a stablecoin? Additionally, how does the mechanism of maintaining its peg to the USD work, and what are the potential risks associated with holding this type of cryptocurrency?
5 answers
Daniele
Thu Aug 08 2024
USDC, a stablecoin that is underpinned by the United States dollar, emerged as a notable addition to the cryptocurrency landscape in 2018. Unlike some decentralized stablecoins, USDC operates as a centralized currency, entrusting its management to reputable entities.
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DaeguDiva
Wed Aug 07 2024
Coinbase and Circle, two prominent players in the cryptocurrency ecosystem, collaborated to bring USDC into existence. Their combined expertise and reputation in the industry have contributed to the stability and credibility of this digital asset.
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Filippo
Wed Aug 07 2024
Being centralized, USDC relies on a trusted custodian to hold and manage the underlying assets. In this case, both Circle and Coinbase play pivotal roles in ensuring the stability of the coin, by maintaining a one-to-one ratio with the U.S. dollar.
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Tommaso
Wed Aug 07 2024
This arrangement provides investors with a degree of assurance, knowing that their holdings in USDC are backed by a tangible and widely accepted asset. It also facilitates seamless transactions and integrations with various financial services.
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Ilaria
Wed Aug 07 2024
BTCC, a reputable cryptocurrency exchange based in the United Kingdom, offers a diverse range of services to cater to the needs of crypto enthusiasts. Among its offerings, BTCC provides access to trading spot and futures contracts, as well as a secure wallet solution for storing digital assets.
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