According to a tweet from Ran Neuner, a CNBC host of CryptoTrader, Coinbase has over 25 million users. The revelation of the news coincides with reports from Coinbase and Circle have formed a joint venture dubbed as Centre Consortium. The two firms are aiming to boost the interoperability of Fiat money on the internet by transforming them into fiat Stablecoins that are free to use and decentralized.
Details of The Joint Venture And The Stablecoin
A Stablecoin is a kind of a Cryptocurrency that is backed against a fiat currency such as a Euro or US Dollar. The importance of Stablecoins is becoming profound following increased concerns by regulators, investors and Cryptocurrency developers over the volatility of Cryptocurrencies. For instance, in 2018 alone, Crypto markets capitalization has plunged from a peak of over $800 billion to the current low of $206 billion. Investments experts believe that the best way to safeguard Cryptocurrencies from a slump and other volatilities of such magnitude is to secure them against fiat money such as US Dollars.
Hence, the joint venture by Circle and Coinbase will be offering a native Stablecoin dubbed as USD Stablecoin-USDC. The token will be available on Coinbase.com and Coinbase apps. Additionally, the Token will be launched on the on Coinbase Pro that is designed for advanced traders who wish to use gain from Crypto markets bull runs.
1 USDC=1 USD
Centre Consortium, the joint venture, will be at the forefront of marketing the new Token and ensuring that the Stablecoins are adopted en masse. To achieve this, the joint venture will be working to develop the network of distribution through improving governance framework. This factor will enable Centre Consortium to build interoperable standards and protocols that fiat money requires to be applied in online transactions. But in this case, fiat money will be replaced by the USDC stablecoin.
On its part, USDC is an interoperable, fiat-based, fungible, and open-sourced Stablecoin. A unit of USD equals a unit of USDC. It is important to note that the USDC cannot fluctuate in value relative to the US Dollar. Further, Coinbase has revealed that the USDC supply is 100% collateralized and the fiat money is held in a secure reserve account subject to change in response to the supply of the Stablecoin in the market.
USDC Will Play A Pivotal Role In Online Transactions
The 25 million users of Coinbase will be able to hold USDC on their wallets for use in internet transactions. In addition, they will be able to buy, sell, receive, and send the Stablecoin in the same manner that they transact on other Cryptocurrencies or fiat money.
According to Coinbase, the benefits of the USDC, as a native token of the platform, is that users will be able to get quality Blockchain experience as Coinbase can easily program its USDC so that they can be easier to apply in DApps operations. Further, mainstream financial institutions such as Banks and Venture Capital firms can accept the USDC on dollar-denominated accounts.