USDC Conversion Restored to Full Functionality.
USDC Conversion: Coinbase recently announced that USDC-to-USD conversions had been reinstated and are now operating normally. As a result, USDC will no longer be auto-converted to USD on Coinbase Exchange.
Coinbase Pauses USDC Conversion Over the Weekend
Coinbase further announced that it temporarily paused USDC-to-USD conversions while banks were closed over the weekend. The exchange added that it would resume the conversions when U.S. banks reopen following the weekend.
USDC is a U.S. dollar-pegged stablecoin. It is a fiat-collateralized cryptocurrency meaning its value is tied to the U.S. dollar. The Centre Consortium, in partnership with Coinbase, Circle, and others, creates it.
USDT, on the other hand, is a controversial cryptocurrency issued by Tether. This company claims to back its tokens with traditional currency, cash equivalents, and receivables from loans made by Tether to third parties. However, due to a lack of transparency and other concerns, many have questioned the legitimacy of the tokens.
USDC offers several advantages over USDT. First, USDC is backed by cash and short-dated U.S. government bonds, whereas USDT is only backed by traditional currency, cash equivalents, and receivables from loans made by Tether to third parties. It makes USDC a safer choice to hold than USDT due to its less ambiguous nature of reserve assets and less volatility.
Furthermore, USDC is a regulated, audited, and transparent cryptocurrency. Its issuers, Centre and Coinbase, have undergone rigorous compliance reviews and adhere to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations.
Converting USDC and USDT
The current 1 USDC is USD 1.00, and buying a 5 USD Coin would cost you USD 5.00. In the case of USDT, the value of 1 USDT is not always equal to USD 1, and it has been known to fluctuate depending on cryptocurrency market conditions. Therefore, it is essential to consider the present market rate when converting USDT to USD or vice versa.
USDC has been restored to full functionality and may now be used to convert USDCoin to U.S. Dollars and vice versa. USDC offers several advantages over USDT, including being backed by cash and short-dated U.S. government bonds, regulated and audited, and adhering to KYC and AML regulations. Furthermore, the value of 1 USDC is typically equal to USD 1, whereas the value of 1 USDT is subject to market conditions.
