Coinbase changes their statement on USDC ‘backed by US dollars’

Coinbase updated their blog article about the USDC coin. Now they have removed the claim for USDC “each USDC is backed by 1 United States dollar”. This is because of the effect of the regulation on USDC as a national CBDC of the U.S.

Recently we covered a report on Circle, where we explained that Circle will work under the government agencies of the U.S, So now Coinbase is changing their statement about USD coin.

Related: Circle plans to become a CBDC bank in the U.S.

Earlier Coinbase exchange informed about the USD coin as each USDC is backed by one U.S. dollar held in a bank account. Now Coinbase updated details about it and now they claimed that ” USDC backed by reserves assets” were held in cash” which is contrary to the earlier statement. 

Coinbase changes their statement on USDC ‘backed by US dollars’ 1
 Source: Bloomberg

“Each USDC is backed by one dollar or asset with equivalent fair value, which is held in accounts with US regulated financial institutions.”

original statement

Also the users of Coinbase exchange also agree with this updated statement because USDC is now fully reserved Central Bank Digital Currency of the U.S under full regulation.

After this new step by the federal reserve on USDC, a big competitor of USDT got out of the field because USDT & USDC both were doing huge competition to each other in the crypto market but now USDC is no longer in the competition.

USDC is a stable coin which is issued by Circle firm, with a total $28 billion market cap and has second place in the StableCoin market.

Read also: Defi Sectors Faces More than $7B Loss So Far : Reports