Yiying Hu
Jun 4, 2024
Let's talk about benefits and applications of USDCs, and why Jarsy chooses USDC as a payment option.
What is USDC?
Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, whose values can fluctuate wildly, stablecoins are designed to maintain a stable value. USD Coin (USDC) is one type of stablecoins. Circle, the company behind USDC, maintains the 1:1 peg with the U.S. dollar by holding an amount of cash or cash equivalents equal to the amount of USDC circulation.
This stability makes USDC a reliable medium of exchange and store of value in the volatile world of cryptocurrencies. Circle is fully compliant with U.S. regulations, adheres strictly to U.S. regulations, ensuring transparency, security, and accountability in its financial transactions.
Advantages of USDC
1. Stability
The primary advantage of USDC is its stability. By being pegged to the US dollar, USDC offers a haven from the extreme volatility that characterizes most cryptocurrencies. This makes it an attractive option for investors looking to preserve capital and for businesses needing a reliable means of payment on blockchain.
2.Transparency
Regular audits are conducted by independent firms, and the results are published to ensure that Circle's reserves are always fully backed. This level of transparency helps build trust among users and sets USDC apart from many other cryptocurrencies.
3.Speed and Efficiency
Transactions involving USDC are fast and efficient. Unlike traditional banking systems that can take days to process cross-border transactions, USDC transactions are completed within minutes. This makes USDC an ideal choice for international payments and remittances.
4.Low Fees
Compared to traditional financial systems, the fees associated with USDC transactions are relatively low. This is particularly beneficial for micro-transactions and cross-border payments, where traditional fees can be prohibitively expensive.
Businesses Applications of USDC
USDC has been adopted by a range of businesses and applications, enhancing its credibility and utility. Here are three practical use cases:
Key Problem: Economic instability and hyperinflation in Latin American countries often erode the value of local currencies, making it challenging for users to preserve their wealth and conduct transactions.
Solution: Airtm integrates USDC to provide a stable digital dollar alternative, enabling users to convert their local currency into USDC. This helps protect their funds from devaluation and offers a reliable means of saving and transacting.
Impact: By leveraging USDC, Airtm users gain access to a stable currency, ensuring their money retains its value over time. This stability fosters greater financial inclusion and economic resilience. Airtm's use of USDC helps over 1.3 million users in 160 countries navigate economic challenges by providing a reliable financial tool.
Key Problem: In Argentina, high inflation rates diminish the purchasing power of the local currency, making it difficult for individuals to save and manage their finances effectively.
Solution: Lemon integrates USDC into its digital wallet, allowing users to store, send, and receive stable digital dollars. This provides a hedge against inflation and a more reliable financial tool.
Impact: The use of USDC enables Lemon’s users to maintain the value of their savings and conduct transactions with greater confidence. This integration promotes financial stability and helps users navigate economic challenges. Lemon's platform has attracted over 1 million users in Argentina, offering them financial stability amid economic turmoil.
Key Problem: Traditional remittance channels from the US to Mexico are often slow, costly, and inefficient, with high fees and long settlement times.
Solution: Félix uses USDC to facilitate cross-border payments via a chat-based experience in WhatsApp. By employing USDC, Félix can offer lower transaction fees and faster settlements compared to traditional methods.
Impact: Félix integration of USDC has reduced remittance fees by 40%, offering significant savings to customers. This innovation has streamlined the remittance process, making it more accessible and cost-effective for users. Félix's use of USDC enables quick, low-cost remittances, benefiting users by providing a reliable and efficient financial service.
How to Buy USDC
A crypto on-ramp is any platform that converts fiat money to cryptocurrencies. To on-ramp USDCs, you can buy them via crypto exchanges such as Coinbase. Alternatively, Jarsy offers users with on-ramp providers such as MoonPay, Transak, and Alchemy Pay. All you need to do is simply complete the Know Your Customer (KYC) verification process, and payment with your selected debit/credit cards, to buy the USDCS on Arbitrum Network.
Regions Supported by On-ramp Providers
MoonPay supports United States, Canada, and other regions.
Transak supports Europe and Asia, United Kingdom, India, and other regions.
Alchemy Pay supports Asia, Europe, and other regions.
Conclusion
USDC represents a significant evolution in digital currencies, characterized by stability, transparency, and efficiency. Jarsy chooses USDC as the payment method due to its trust and security and the stable 1:1 peg with the US dollar, underscores its role in modern financial systems.
Recommended articles
