Coinbase—a one time biggest Bitcoin trading exchange, has recently endorsed a newly launched USD-pegged cryptocurrency stablecoins, (USDC). The goal of the coin is to dethrone Tether (USDT) (which recently experienced a massive sell-off) as the stablecoin of choice.
Coinbase Listed USDC
Coinbase made it known via a news release that its customers, will henceforth be able to buy, sell, send, and receive the USDC stablecoin, on its platform.
The USDT coin which was recently launched by the unicorn Circle will be backed by physical dollars stored in company-controlled bank accounts.
The report also made it known that Coinbase users from more than 32 countries including the USA— expect New York, will be able to send and receive the stablecoin. Coinbase also made it clear that the stablecoin will only be listed on Coinbase.com for now. This means users of the Coinbase Pro will not have the chance to trade this token. Integration on the Coinbase Pro platform is however expected to take effect in weeks to come.
Advantage of USDC
Coinbase has also made the reason behind its involvement in the Stablecoin project known through a recently released report. The Exchange stated that:
“The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
Coinbase further stated that:
“the introduction of a fiat-based blockchain currency could contribute to the development of “a more open financial system” and could further the adoption of decentralized applications(dApps)”
The report also made it known that Coinbase is of the notion that stablecoins like USDC are best used for business-related purposes and other e-commerce rated applications. The exchange also made it known that the creation of this type of Stablecoin is independent of the price volatility associated with using bitcoin and other cryptocurrencies as working capital.