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Circle presents a stable currency in the United States on the exchange of Asian cryptocurrencies

Circle, a cryptocurrency unicorn currently valued at $ 3 billion, has recently launched its stable currency backed by the US dollar. According to an article published by the South China Morning Post (SCMP) on 27 September, Circle's US Dollar Coin (USDC) will start trading on a series of cryptocurrency exchanges such as Huobi, OKEx, Poloniex, KuCoin, OKCoin and Digifinex in the next week.

The stable coins guarantee security during the volatile periods

The USDC goal of Circle is to create a currency anchored to another stable asset such as the US dollar. Pegging allows the token to retain its value on the asset pegged value. It would be significantly less volatile than the cryptocurrencies on the market, such as Bitcoin, whose value fell by around 65% from its historical high of nearly $ 20,000 in December 2017 to $ 6,715 as of September 28, as seen on CoinMarketCap.

Stable currencies are often used in cryptocurrency trading because they allow faster settlement times than traditional fiat currency or legal tender currency. According to Dave Chapman, president of the Hong Kong cryptocurrency broker, OSL:

"Stable currencies can guarantee security during periods of volatility, as traders can quickly liquidate their positions in a stable currency with the guarantee of price stability."

Champman added that his team has seen a growing demand for stable coins from their customers.

Circle a stable USDC currency to challenge Tether

There are many coins stable in the existing market. Circle's goal, however, is to challenge Tether, one of the most popular stable currencies, which is often used internationally by traders. According to CoinMarketCap, Tether is currently the eighth most popular cryptocurrency with a market capitalization of $ 2.8 billion. Unfortunately, Tether has gained a negative reputation and collected many controversies about his reserves. He did not support his claim to have a reserve in US dollars. Furthermore, Tether has never had a clear audit by a proper accounting company.

To combat these problems, Circle is determined to be open and transparent with the cryptocurrency community. Circle mentioned on his website that it is a "Money transmitter regulated with BitLicense for the exchange of virtual currency"And it is accordingly a"open a financial book."

SCMP reported that Circle would launch its stable currency with four reserve banking partners. One of these partners is a subsidiary of the US Bank National Association, known as US Bancorp Asset Management. These partners will receive deposits in US dollars from institutions and individuals. They will also be responsible for staying on US dollars in a reserve.

The stable currency will be checked every month by Grant Thornton, a professional accounting services company.

The biggest ambition of the Club for the USDC

Circle, however, has bigger goals for stable money. Circle has partnered with bitmain cryptocurrency giant and together they plan to launch new stable currencies backed by a number of legal currencies. Jeremy Allaire, Circle founder and CEO, said:

"By becoming our partner for the USDC, Bitmain shares a common vision with Circle, as we can rebuild the global economic and financial system on top of the blockchain and cryptocurrency infrastructure. A stable fiat currency is a fundamental part of this infrastructure. "

Allaire said the Circle expects to release other stable currencies linked to other currencies soon. Circle noted that stable currency is not just a tool used for commercial purposes. His website mentioned that with the USDC, people could transfer their USDC tokens anywhere in the world in a matter of minutes in an economical and secure manner, opening up new possibilities for trade, risk hedging and lending. In addition, Circle expects the USDC to be used in the future to trade and even settle conventional financial assets, including real estate, debt and financial contracts.

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