Why Coinbase wants to convert USDT to USDC

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Recently, Coinbase published a post and a tweet to encourage USDT holders to convert their USDT to USD Coin (USDC). USDC holds the second position in stablecoins. USD Coin (USDC) is backed by cash and short-term US Treasuries. But why is Coinbase desperate to convert USDT to USDC?

Coinbase is offering zero fees to encourage USDT holders to take advantage of this offer and convert USDT to USD Coin (USDC). There are mixed reactions on Twitter. Since they are transparent and trustworthy stablecoins, they don't need to be desperate to increase their user base.

People will choose what is best for them. People react to this in a complex way, some say that it is always better to wait for the next promotion when it offers a conversion rate of 1 to 1.05 USDC.

Co-founded USD coin of Coinbase together with Circle in 2018. It is now becoming one of the popular stablecoins. Tether (USDT) is the first stablecoin, although there is a lot of controversy surrounding USDT. Despite criticism and controversy, USDT still holds the top position among stablecoins.

Binance crypto exchange stopped supporting USDC in November 2022. So you can no longer use USDC in Binance. And if you deposit USDC on Binance, it will automatically convert to Binance USD (BUSD). It looks like there is a war going on in stablecoins to get the first position.

There is no doubt that there is risk in stablecoins. You can't hold stablecoins and think everything is safe. The algorithmic collapse of the UST stablecoin is one big example. Coinbase mentioned USDC as the most trusted and recognized digital dollars. Is there any chance that USDC will be a central bank digital currency (CBDC)? We may be using CBDC without realizing it.

It is clear that the central bank is working hard to launch a CBDC. There are pilot programs. Not just one country, but many countries are working on it and testing CBDC. Cryptocurrency gives power back to the people, while CBDC gives power back to a central authority.

We'll see what happens next. So what do you think? Feel free to leave your comments. Thank you for reading this post. That's all for now. I will be back with another post.