What is USDC? Here are Some Common Questions

is one of the most influential stablecoins in the world, and is experiencing growing adoption and integration in the global financial landscape.

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

How does USDC maintain its value?

USDC claims to maintain its value by pegging 1:1 to the US dollar. Each USDC token is backed by the equivalent value of US dollar-denominated assets held by Circle Internet Financial, LLC as reserves.

The portfolio of the Circle Reserve Fund is managed by BlackRock and custodied at The Bank of New York Mellon.

How can I buy USDC on CoinJar?

You can buy USDC using your bank account on CoinJar. You can also swap it for other cryptocurrencies on CoinJar.

How can I convert USDC back to fiat currency?

To convert USDC back to fiat currency, you can sell it on CoinJar or any other exchange that supports USDC trading.

Is USDC minted or burned? What does that mean?

When new USDC tokens are created, it is referred to as “minting.” When USDC tokens are removed from circulation, it is called “burning.” More information is here.

Is USDC a cryptocurrency?

Yes, USDC falls under the category of cryptocurrencies, specifically stablecoins. Unlike normal cryptocurrencies which can be volatile, USDC is designed to have its value remain stable due to its peg to the US dollar. It has unpegged in the past however.

Is USDC different or similar a CBDC (central bank digital currency)?

USDC is a private digital currency issued by Circle and backed by reserves. CBDCs, on the other hand, are digital currencies issued by central banks (such as the US Federal Reserve) and are part of the official monetary system.

How to buy USDC / buy USD crypto?

To buy USDC on CoinJar, download the CoinJar App on iOS or Android. Sign up and verify your ID. Then buy Bitcoin and almost 50 other cryptocurrencies using cash or credit cards.

Where to buy USDC?

You can buy USDC on CoinJar. It is the second-most popular stablecoin, so most exchanges will list it.

Is USDC coin worth buying?

USDC is a stablecoin that is pegged to the value of the US dollar. Here are some points to consider when deciding whether it’s worth buying.

-It is designed to maintain a 1:1 value with the US dollar, for preserving value during market volatility.

-It is commonly used for trading, remittances, and as a store of value. If you need a stable cryptocurrency for these purposes, USDC could be suitable.

-It is widely accepted on cryptocurrency exchanges, so you can easily convert it to other cryptocurrencies or fiat currencies.

-While it is considered low-risk due to its stable value, it’s essential to understand that it’s not an investment in the traditional sense. It won’t generate returns like other cryptocurrencies might.

Do your research and you could even ask a financial advisor.

Is USDC owned by Coinbase?

USDC was created through a collaboration between Coinbase and Circle when they co-founded the CENTRE Consortium. However, recent developments have led to changes in ownership and governance.

Coinbase is acquiring a minority stake in Circle Internet Financial, and the companies are dissolving their Centre Consortium partnership that had issued USDC. As part of this move, Circle will bring issuance and governance of the stablecoin fully in-house. This means that Circle will now manage USDC independently.

In summary, while Coinbase played a significant role in the creation, it is no longer directly involved in its governance. The stablecoin is now primarily managed by Circle.

How much is USDC to buy?

1 USDC is worth 1 USD, however you need to add fees of the platform to that amount. And if you used your credit card to buy it, you will have to add further fees on top of that.

How to buy USDC on CoinJar?

-Download the CoinJar app on iOS or Android. You can also use the web version of CoinJar.

-Create an account with CoinJar and verify your ID. This is required to comply with the regulations and laws in your country. You must provide some personal information, such as your name, email, phone number, and address.

You must also upload a photo of your ID document, such as a passport or driver’s license.

The verification process may take a few minutes or hours, depending on the volume of requests.

-Transfer money into your CoinJar account.

-Buy USDC at the market price or place a custom order.

-CoinJar provides a secure and convenient wallet for storing it and other cryptocurrencies. You can access your wallet from the app or the web.

You can also send and receive it from other wallets using your CoinJar address or QR code. If you prefer to use a different wallet, you can transfer your USD Coin from CoinJar to any other compatible wallet.

Uses

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

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

-It 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.

-It 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. It can be faster, cheaper, and more convenient than traditional methods, such as wire transfers, or using banks.

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

In popular culture

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

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

Who started it and why?

It was launched in September 2018 by Centre. The main goal of Centre was to create a global and open standard for fiat-backed stablecoins that could enable interoperability and innovation across the cryptocurrency ecosystem.

Centre aimed to change the global financial landscape by connecting every person, merchant, financial service, and currency worldwide.

Is it popular and what is it used for?

It is currently the stablecoin in the world, after Tether (USDT) in terms of market capitalisation.

Why own it?

A benefit 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 than traditional payment methods, such as bank transfers.

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