Buy USD Coin in Australia

USD Coin (USDC) is a type of cryptocurrency that is backed by the U.S. dollar. Unlike other cryptocurrencies that have volatile prices, USD Coin is designed to maintain a stable value of one USDC equal to one U.S. dollar.

This makes USDC a stablecoin, a digital currency that aims to provide a reliable and convenient way to store and transfer value using blockchain technology.

How does USD Coin work?

USDC is issued by a private company called Circle. Circle claims that every USDC in circulation is backed by a corresponding U.S. dollar or other approved assets held in segregated accounts with regulated U.S. financial institutions.

These accounts are regularly audited by an independent accounting firm to ensure that the USDC supply matches the reserve assets.

You can buy USDC with fiat currency (such as Australian dollars, Pound Sterling, USD or EUR) or other cryptocurrencies (such as Bitcoin or Ethereum) on various platforms, including CoinJar. You can also sell USDC for fiat currency or other cryptocurrencies on CoinJar.

What are the benefits of USD Coin?

One of the main benefits of USDC is that it seemingly offers low price volatility, meaning that its value does not fluctuate significantly over time. This makes USDC suitable for storing and transferring value without worrying about losing purchasing power due to market fluctuations.

USDC can also be used as a hedge against inflation, as it is pegged to the U.S. dollar, which is considered a relatively stable currency.

This however means that the value won’t rise, it will stay stable. Customers may expect that these coins will always maintain their value with the US Dollar.

USDC is backed by U.S.-regulated reserve assets. Unlike some other stablecoins that have faced controversies over their reserve management and compliance, USDC provides regular and verifiable reports on its reserves and operations.

However, after successful audits in 2019, 2020 and 2021, there was a failed audit in 2022. Circle hired Deloitte for the 2023 audit, and the results are here.

Things to note

USDC, despite being a stablecoin, is not guarateed price stability (stablecoins have “unpegged” before).

Why own USD Coin?

A benefit of USDC is that it can be used as a medium of exchange for various purposes, such as buying and selling other cryptocurrencies, paying for goods and services, sending remittances, and accessing decentralised applications (DApps).

USDC can be transferred 24/7 and is faster and cheaper than traditional payment methods, such as bank transfers or credit cards.

USDC can also be integrated with various platforms and protocols that support blockchain technology, such as Visa, which announced that it would allow USDC to settle transactions on its network.

Is USD Coin popular and what is it used for?

USD Coin is currently the second-largest stablecoin in the world, after Tether (USDT) in terms of market capitalisation.

Uses of USD Coin

While USDC as a digital asset isn’t ideal as a speculative investment, as its value is stable, it has some uses that make it worth having.

-USD Coin can be used as a bridge currency to trade other cryptocurrencies on various platforms, including CoinJar.

-USD Coin can be used as a payment method for goods and services that accept cryptocurrencies, such as online shopping, gaming, travel, and entertainment. USD Coin can also be used to pay for fees and subscriptions on various platforms and services that support cryptocurrencies.

-USD Coin can be used as a remittance tool to send money across borders and regions, especially to countries with limited access to banking and financial services. All users need is a phone. USD Coin can be faster, cheaper, and more convenient than traditional methods, such as wire transfers, or using banks.

-USD Coin can be used as a gateway to access various DApps that run on blockchain technology, such as gaming platforms.

USD Coin in popular culture

In September 2021, Twitter announced that it would enable users to tip each other with cryptocurrencies, including USD Coin, through a partnership with Stripe, a payment platform.

This made Twitter the first major social media platform to support cryptocurrency tipping, allowing users to reward each other for their content and engagement.

Buy USD Coin: Conclusion

USD Coin is a stablecoin. It is backed by the U.S. dollar and runs on blockchain technology. USD Coin offers low price volatility, high transparency, and wide usability, making it a popular and convenient choice for cryptocurrency users and enthusiasts.