Coinbase and Circle announce stablecoin USDC

in usdc •  7 years ago 

Coinbase customers in supported jurisdictions can now by, sell, send and receive the new stable coin created by Coinbase in partnership with Circle. USDC works simply by have $ as collateral for all USDC in existence but using the blockchain tech to make payments faster and cheaper and relying on the stability of the USD to remove fluctuations of crypto volatiliy. Another reason you'd want to use a stable coin over fiat when daytrading is that in some countries trades into fiat are taxable events.

USDC will use the Ethereum blockchain for transactions and since there is no mention of fees for transfers I am guessing there will be some minimal fees involved. Considering Binance recently sent over $200 m in one transaction and only paid $0.06 for it fees should be very minimal, this is something we've heard before though. Bitcoin promised minimal fees for a long time until the hype of late 2017 made transfers immensely expensive and Ethereum had to up fees as well when the blockchain was clogged with Cryptokitties.

In my opinion I don't see any of the current stable coins outperforming Steem Dollar in term of fees, but for stability I can see USDC doing rather well. If you thought the altcoin craze was insane, it seems that we're heading for a stabelcoin craze next.

Here's the video announcement of USDC from their blogpost

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Unless they're issued by the state itself, and backed up by legislative guarantees against insolvency, I can't see this new influx of centralised "stablecoins" providing any real value to our space. Even then I would be skeptical.

Who wants to hold an asset like USDC? It's a losing proposition. You are giving Coinbase an interest-free loan on your USD, which means you are losing money at the rate of inflation. We hold crypto because we expect its value to rise in the future; we do not expect the value of "stablecoins" to rise; in fact, thanks to inflation, we fully expect it to diminish.

I think this is some good press for crypto and may, in the medium term, alleviate some of the concerns people have about Tether... but I don't think USDC brings us any closer to mainstream adoption. On the contrary I'm actually a bit worried what might happen if these tokens start getting pushed as payment mechanisms. If businesses start accepting "crypto" but they're really only accepting things like USDC... have we really won?

The value is for apps, so yes there is huge value for the space as u can now build an app and use a stable currency.

Of course this works also with dai and other stable coins so having many of them does not really make sense.

To me this is a big bet on ethereum and strengthening of that platform

Well, Dai is a bit of a special one as it is an attempt at a decentralised peg to USD. There is no one central authority which issues Dai; instead, it is issued directly by users as a collateralised debt instrument, using a system of smart contracts on the Ethereum blockchain. It has a distributed governance system and stakeholders vote on proposals, oracles, etc.

In many ways it is like BitShares' smart assets, particularly BitUSD. I think there is definitely a place for decentralised pegs, and I am especially interested in the many ways of solving that problem. Particularly, the whole idea of creating a liquid asset by betting against the performance of fiat money keeps me up at night... in a good way.

However, I hope "accepting crypto" never means accepting things like Tether, TrueUSD, and these Gemini/Coinbase "stablecoins." If that's the case we're just trading IOU's backed by a centralised entity, and we've had those for decades. They're just called dollars, or pounds, or euros, or yen. We're doing all this to get rid of those.

TL;DR: I like stablecoins. I don't like "stablecoins." Tether, TrueUSD, USDC... these are just fancy IOUs.

Oh, man. That could be a big deal. Agreed on SBD's @acidyo. Since the last couple of HF's, it's pegged. The @caffetto crew has been buying and paying one another with SBD's the last few months. Real world application.

As long as those centralized banks, which hold the USD the stablecoins is pegged to, don’t fail...

We need more decentralized stablecoins but not sure the market is truly ready for that.

What about a stablecoin that is pegged to all existing stable coins? :D

HUSD is a start to that dream :P

Hi acid. Didn't realize that fact about moving trades into fiat for stability would be a taxable event. I haven't paid much attention to the finer detail and suggest I do.

I doubt it applies for everyone, depends on your location I guess.

I was jealous of your trip to Malta the other week as I want to go and open a bank account there really soon.

Nice news broskies. Coinbase is trying to make big moves. This is Bongripper427 on Smoke.io. I'm guessing your acid there, followed you and resteemed this post !

Screenshot_20181024-002527.png

This is my coinbase account. USDC wallet is new join in coinbase.

In my views, I see the stability of USDC as a deliberate economic edge and strategy by the US to vallidate their money market as ll as their economy by securing a stake in the crypto market. Already, USD is used as a basis to quantify and value cryptocurrencies, even bitcoin. Pegging USDC at same value with USD will again allow USD to remain a world currency of exchange. I rather feel, STEEM could surge for exchange viability with the stable coins to gain value. USDC will still remain as stable as it is due to it's affiliations with USD. Thanks @acidyo for sharing this.

Maybe SBD will get some fame as a stable coins. Anyway these fads are ridiculous :)

so they made a coin similar to sbd but more similar to Tether? They made their own stable coin and for example that wins against Tether as it can be considered more reputable? (especially after the tether incident)

I don't mean to hit you with all the FAQ's, but is this any different from Tether? The impression it gives me -- Coinbase finally decided to step their game up in the cryptospace, but wanted creative liberties over it. It's tough, but since a majority of us turn to Coinbase, naturally we'll try this USDC.

USDC is the same as Tether except that it has been created by much more reputable companies.

This basically.

Funny thing atleast they are honest they aren't going to 100% back the funds:
For Circle USDC, when you wire fiat funds into our system, we deposit those funds with one of our banking partners. In the future, Circle may also invest these fiat funds in highly-liquid, AAA-rated fixed income securities.
Source: https://support.usdc.circle.com/hc/en-us/articles/360015278312-How-does-a-customer-know-that-there-are-reserves-to-match-their-USDC-holdings-

Well It's not that different from Tether purpose wise but the advantage I see already of using USDC over USDT is that Coinbase is not as scammy as Tether and is not run in the shadows and doesn't have all those unresolved legal issues, so you could say your money is safer with USDC than with USDT.

USDC is a step closer(father from going against the system) to making a better 100% fait stablecoin...
Still it not going to be 100% backed...
For Circle USDC, when you wire fiat funds into our system, we deposit those funds with one of our banking partners. In the future, Circle may also invest these fiat funds in highly-liquid, AAA-rated fixed income securities.

https://support.usdc.circle.com/hc/en-us/articles/360015278312-How-does-a-customer-know-that-there-are-reserves-to-match-their-USDC-holdings-

Thanks for sharing a useful information sir

After a big panic selling of USDT (stable coin) past week.
Now most of the exchanges are looking for their own stable coins. And recently few of them launched their own stable coins like Huobi and few more exchanges. But I don't think such steps will decrease the volatility of BITCOIN. And I have doubt about success of such Coins and their tokens Like BNB, Huobi token, KuCoin token or Digitex Futures Token are good. But Stable Coins might be move Crytpo industry towards regular currencies.. That is already existing (Fiat currencies).

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You got a 30.98% upvote from @ocdb courtesy of @acidyo!

Hmm finally a Stable coin that you can sort of trust? The days of scammy USDT are counted finally! So sad TUSD didn't take advantage of the position they had when they launched as a competition against Tether... They should have waited a bit to release as an SMT instead of an ERC-20 :-(

Still not fully backed(as much as fiat can? ):
For Circle USDC, when you wire fiat funds into our system, we deposit those funds with one of our banking partners. In the future, Circle may also invest these fiat funds in highly-liquid, AAA-rated fixed income securities.

Source: https://support.usdc.circle.com/hc/en-us/articles/360015278312-How-does-a-customer-know-that-there-are-reserves-to-match-their-USDC-holdings-

Well I did say "sort of trust" unless they offer absolute transparency we will never know if it is truly backed or not, like USDT.

I waiting for noobs to do this:
I can invest in this new coin called USDC and it never goes down? I going all i-this is the Bitcoin Killer I been waiting for!

A 'truly' stable and versatile 'alt. coin' which can be adopted throughout multiple platforms would be such a wonderful accomplishment, greatly benefiting (hopefully) the general population.

Cheers @acidyo

Thank you for this valuable information! It is good to know that at the moment the rates of transactions do not exceed the dollar so that interacting with this currency is quite beneficial

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