Coinbase and Circle have come together to launch a digital dollar i.e. a stablecoin USDC that is up for buy, sell and receive on exchange’s iOS and Android apps, and website. However, Circle reserves the right to block certain addresses and freeze associated USDC.
Coinbase and Circle launches USDC- A digital dollar
US-based exchange Coinbase has now jumped on the stablecoin bandwagon as well as it launches USD Coin (USDC) in association with Circle. Customers can buy, sell, and receive USDC at Coinbase website and in its iOS and Android apps.
The official announcement states that this is the first time Coinbase has supported a stablecoin which is fundamentally different from other cryptos as
“a USDC is meant to represent a single US dollar (USD) that does not move up or down relative to its reference currency. One USDC is a 1:1 representation of a US dollar on the Ethereum blockchain.”
Coinbase has joined Circle for this new venture who have become the partners and co-founders of CENTRE Consortium.
Jeremy Allaire, co-founder, and CEO of Circle talked about the partnership with Coinbase and the digital dollar:
“Coinbase joining us to co-found CENTRE and launch USDC reinforces the value of a shared, standard, interoperable stablecoin. Like internet standards, USDC is now not owned by one single company, but distributed among network participants according to clear rules, regulations, and collectively-owned software. When we began work on CENTRE and USDC last year, we envisioned collaborating with a consortium of industry leaders to set new standards for global value exchange and financial contracts. We’ve been thrilled to collaborate with Coinbase on CENTRE, and we look forward to welcoming more partners who share this vision.”
It further points out the reasons for this to be “an important step towards a more open financial system,” such as the large transfers for business purposes can be made as easily as small e-commerce payments and with USDC, one can remain confident that the value is stable.
Moreover, with the expanding ecosystem of crypto exchanges, dapps, and blockchain-based games, USDC can be “used as a stable digital dollar to buy items in the crypto ecosystem, from Cryptokitties to tickets for blockchain-based games.”
Coinbase notes that a digital dollar is easier to program with, as “given the private keys for USDC, a program can easily send and receive them back and forth using the public Ethereum blockchain.”
USDC is already supported on Coinbase Wallet and will be coming to Coinbase pro in the coming weeks.
However, as pointed out by crypto enthusiast, Eric Conner on Twitter, Circle reserves the right to block certain addresses and freeze associated USDC.
He further commented in part,
“It’s not inherently bad. It’s just that the risks/caveats should be made fully transparent and I don’t think @coinbase has done that,” before adding “this is just a risk that people have to take into consideration when using a stablecoin.”