Hi, Steemians!

This article is my homework for the 7th week of Steemit Crypto Academy.
Professor @yohan2on explained "Demerits of Stable coins" in this course.
Now, I will briefly explain the stablecoin named USDC .

USDC - USD Coin

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What is a stablecoin ?

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A stablecoin is a digital currency that aims to keep its price constant in relation to a stable commodity. The value of a stablecoin can be pegged to fiat currency, gold, other digital currencies, exchange-traded goods, and so on. Collateralization or an algorithm that applies some kind of monetary policy are usually used to keep the peg in place.
This ensures that the coin's lender keeps 1 US dollar in collateral for every 1 USDC.

What is USDC ?

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The US Dollar Coin is a completely collateralized stablecoin backed by the US Dollar.The price of USDC is obviously set at $1. Its peg process employs a straightforward 100 percent collateralization strategy. This means that there is $1 in collateral for every 1 USDC token in circulation.

When anyone buys a USDC token from an authorized issuer, a USDC token is produced. The issuer would use an ERC-20 smart contract to generate an equal amount of USDC for every US dollar earned. The object is then returned to the original purchaser. The initial US dollar sent to the issuer is then kept in reserve as collateral.

The customer has their USDC, which can be redeemed for equal fiat currency US dollars at the issuer. This ensures that any USDC token is backed by a US dollar and that it can be redeemed 1:1.

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USD Coin, in a nutshell, is a service that tokenizes US dollars and allows them to be used on the internet and on public blockchains. Furthermore, USDC tokens can be converted to USD at any time. The ERC-20 smart contract ensures the issuance and redemption of USDC tokens.

The Difference from USDC

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USD Coin varies from other stablecoins like Tether in that its issuers tend to be licensed financial institutions with high corporate governance requirements, which are expected to have maximum disclosure and are audited on a regular basis. This means the stocks are kept in a 1:1 ratio to the counterpart in fiat currency.

USD Coin issuers are expected to report their USD assets, which are then reported on a monthly basis by accountancy company Grant Thornton LLP. Anyone who needs to look at these monthly reports will do so on the internet.

Some exchanges to get USDC

• Coinbase
• CoinEx
• OKEx
• Kucoin
• Binance
• Poloniex

Cc: @steemitblog @steemcurator01 @steemcurator02 @yohan2on