Buy USDC

USDC (USDC) is a type of cryptocurrency that is backed by the U.S. dollar. Unlike other cryptocurrencies that have volatile prices, USDC 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 USDC 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 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 and risks of USDC?

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.

There are risks with stablecoins, however, please see below.