In September 2018, Center, a partnership between Coinbase and Circle, introduced USD Coin (USDC). Initially released as an ERC-20 token on the Ethereum blockchain, it has subsequently made its way to other blockchains such as Solana, Stellar, and Algorand. Both centralized and decentralized exchanges allow for the buying of it (DEXs). It offers all the advantages of cryptocurrencies, such as quicker, less expensive, permissionless transactions, without price volatility because it is a stablecoin.
The coin in practice
Its price is fixed at 1:1 to the US Dollar. This peg is kept by the platform using a straightforward 100% collateralization process. In other words, if a user begins a transaction to purchase the coin using fiat money, the fiat money is deposited and kept as a single USD and a fresh batch of the coin is created. The USDC is “burned” when the fiat money is sent back to your bank account, but, if a user were to sell the coin in return for fiat money. Theoretically, there is $1 worth of collateral kept for each USDC token that is currently in use. A user must first satisfy the Know Your Customer (KYC) identity criteria to acquire it. Users may then link their bank account and send a wire transfer in US dollars after completing the process. The customer can utilize an exchange to swap the coin for other cryptocurrencies after the money has been converted to USDC. It may also be exchanged back into US dollars, which are subsequently sent to the users’ bank accounts.
USD Coin: Pros and Cons
The key benefit of it is that it makes it possible to purchase and sell other cryptocurrencies without requiring users to transfer fiat money in and out of exchanges. Sending the coin is quicker than sending traditional currencies since payments happen instantly and it is possible to do so around the clock. Its minimal transaction costs make it both time and money efficient to use. The use of it is still not without drawbacks. One is that there is no price growth. Users should be aware of the regulatory environment that surrounds stablecoins and digital currencies. Government restrictions on these digital currencies, according to crypto specialists, may have a debilitating impact on their future.
Delivering USDC
Businesses may transfer it to over 80 countries across the world with a free Circle Account. Remittance payments may be received without having a Circle account, and the transfer is quick and easy. There are no charges for receiving or transferring it between Circle accounts. Additionally, blockchain transaction fees for transferring USDC are a small portion of what conventional remittance firms charge. The best part about the coin is that there is no minimum transfer amount. By depositing US dollars through card payments or bank transfers, you may quickly mint the coin using Circle Payments. Free transfers of it are available between Circle Accounts and to blockchain addresses. You may increase your ability to send money internationally without depending on regional banks or remittance companies by paying the coin through rapid wire transfers to accounts in more than 80 countries using Circle Payouts.
Conserving value
The security, cost-savings, and simplicity of stablecoin technology are all benefited by USDC’s remittance and international money transfer services. A cross-border invention that surpasses established remittance companies that have for years taken advantage of their favorable position to extort customers with excessive costs while providing subpar service. Sending money to loved ones all around the world is now simpler than ever thanks to USDC’s minimal fees and quick payments.
Exchange rates for USD coins by exchange site
The following lists the exchange costs for the coin charged by various exchange sites based on trades and withdrawals, respectively.
- Binance: 0.1%; 1.0 USDC
- BitTrex: 0.75%; 61.0 USDC
- Bitfinex: 0.1% / 0.2%; 9.4173 USDC
- Coinbase:0.5% ; 8.015 USDC
- Crypto.com: 0.4%; 25.0 USDC
- Gate.io: 0.2%; 2.0 USDC
- Huobi: 0.2%; 2.0 USDC
- Kraken: 0.16% / 0.26%; 7.5 USDC
- Kucoin: 0.1%; 30.0 USDC
- OKEx: 0.08% / 0.1%; 20.0 USDC
- Poloniex: 0.145%; 34.9 USDC
Withdrawal fees
Its withdrawal on some exchange sites are:
- Bleutrade – free
- Coinone – free
- OKEx – $0.01
- Liquid – $0.50
- Coinbase – $0.63
- Poloniex – $1.89
- Gate.io – $2.00
- CoinEx – $2.50
- Binance US – $2.98
- CREX24 – $3.05
- Kraken – $3.56
- WhiteBit – $3.61
- OKCoin – $4.57
- Flyp.me – $5.01
- Huobi Global – $5.15
- Binance – $10.02
- Bitkub – $10.02
- BitMart – $10.02
- Bitrue – $13.03
- SouthXchange – $16.33
- Bitstamp – $20.04
- Kucoin – $20.04
- Crypto.com Exchange – $25.05
- TOKOK – $50.10
USDT transaction fees on Bitgert
Bitgert stated in April 2022 that there will be no transaction fees for the USDT and USDC on the Bitgert network. This will lower the cost of consumers’ transactions with these coins.
