Please Help Me To Understand USD Coin

Not sure where to post this question. I am still incredibly new to cryptocurrency. I started January of this year. My question is, I received what I perceived to be a large sum of money in my USD Coin wallet. According to my Coinbase account, I got the money from Coinbase. However, I don’t understand why? Was this all the money I made in a 6 month period?

Also, I’m still having a hard time actually understanding what USD coin is. All I keep reading is that USD Coin is a dollar for dollar coin (stable coin). I assumed that meant it was a universal coin that retailers use, and we can just move coins there to make purchases? Or am I still not understanding the purpose of USD coin. Please help clarify! Thanks…

Nevermind, I found my answer. Coinbase did not have a good explanation. I found a site that explained it better. USD Coin/USDC is simply a module where our US Dollars get “tokenized” or converted in to tokens. That to me is a much better explanation that just writing “It’s a stable coin.”

Keep in mind that USDC is the tokenized dollar provided by Circle Internet Financial. I believe the C stands for the Circle and not Coin. Several companies have audited proof of reserves. The two that I’ve used are the USD by Circle and Gemini. The key in my opinion is making sure that you trust the audit processes and that the company issuing the USD complies with the SEC rules for securitized digit currency.


1 Like