When combined with the improvements in blockchain technology, the wealth of untapped potential and use cases is clear for USDC. These opportunities are particularly relevant for countries where residents could benefit greatly from the utility USDC affords over traditional fiat currencies. For example:
- Stable by design. The value of USDC fluctuates far less than other cryptocurrencies (only a fraction of a cent over the last 2 years). This is because its value is pegged to the U.S. dollar. The strength and stability of USDC’s peg to the U.S. dollar, backed by high-quality reserves and with transparent and regular attestations, makes it a safe-haven for users who want to remain active in the crypto market during a downturn, or period of high volatility.
- Accessibility. Stablecoins like USDC are a secure, cheaper, and much faster way for anyone to send value to another party. Transfers through the legacy banking system, which today can take multiple business days to settle, can be completed in under an hour with USDC, which runs upon blockchain technology instead and which saves users from the added intermediary costs associated with having to go through the traditional banking network.
- Access to DeFi. Coinbase and many others believe stablecoins such as USDC will play an increasingly significant role as the fiat on-ramp to the new web3 ecosystem. Improving the ease of fiat-to-crypto transactions will pave the way for even more users to access DeFi. By owning USDC, users can interact with innovative new dApps in areas like trading, insurance, saving, lending, and borrowing, where USDC is a trusted means of exchange.