Hello steemians Welcome to my week 7 home work post submitted to professor @yohan2on which is about stable coin. Thanks as you take your time to go through this post.

Homework task: Write about any one of the following Stable coins
USD Coin (USDC) ✔
TrueUSD (TUSD)
Paxos Standard (PAX)
Digix (DGX)

I will be writing on USD Coin (USDC)

^{Source:google.com}

Lets refresh our our with this question

WHAT IS A STABLE COIN?

A stable Coin is a Cryptocurrency coin that is pegged on the ratio 1:1 with the United States Dollar (USD). This also means that if the value of $1 is 480 Naira, the of a stable coin would also be 480Naira in Nigeria.
Now the question of the day

WHAT IS USD Coin (USDC)?

USDC is a digital stable coin that is pegged to the United States Dollar and runs on the Ethereum Blockchain. Each USDC is backed by a Dollar held in reserve. According to ^Wikipedia, USDC was first announced 15 May 2018 by Circle and launched in September 2018. As of March 2021, $10 billion USDC were in circulation.

^{Source:coindesk.com}

^{Source:coindesk.com}

From further research, I realized that USDC policies which include both its financial and technical standards are managed by a combination of investors whose sole purpose was to engage in a joint venture and these investors go be the name CENTRE. CENTRE was initially brought to existence by a peers-to-peer (P2P) company called Circle and Coinbase.

IMPORTANCE OF USDC

• It can be moved across many cryptocurrency exchanges and platforms with ease and also very fast which is a good quality needed by traders, not only traders but also investors who are in the cryptocurrency development markets looking for a Blockchain-based stable asset.
• USDC can also be used in time of inflation and currency devaluation (rainy days), because of its stability and mirror to the United States Dollar.
• It is easy to convert USDC from cryptocurrency to fiat money.

HOW TO BUY USDC

• USDC can be bought directly from the issuer, according to ^Luno, this can be done when the issuer will apply an ERC-20 smart contract to create an equivalent amount of USDC. This is then sent back to the original buyer. The US Dollar that was originally sent to the issuer is then held in reserve as collateral. The buyer has their USDC, which is redeemable against the issuer for equivalent fiat currency US dollar. This guarantees that every USD Coin is backed by the US dollar and its redeemable on a 1:1 basis.
• They can also be bought through trading on exchanges such as Luno, Binance, Coinbase, Poloniex, just to mention but a few; NOTE: When USDC is traded on the above mentioned exchanges, it is bit being acquired directly from the issuer but from a third party but the buyer still own the coin and will always have the right to withdraw his/her coins from the issuer.

This is the end of my week 7 home work.

I really appreciate you all for going through my article, reviews, critics, suggestions and corrections are welcomed.

Thanks!

Cc: @yohan2on