These stable coins are mainly backed by reserve assets like euros or dollars to achieve price stability.
The price stability of these USD Coins (USDC) cryptocurrency coins contrasts sharply with the notorious price fluctuations of various other popular cryptocurrencies such as Ethereum and Bitcoin.
The government of the United States does not issue the USD Coin (USDC) cryptocurrency.
Hedge against volatility- Investors with exposure to some other cryptocurrencies can highly reduce the volatility of their portfolios by strategically buying a stable coin like the USD Coin (USDC) cryptocurrency.
Pricing in fiat money- The digital assets are listed on the cryptocurrency exchanges can be priced in fiat money with a stable coin like USD Coin (USDC) cryptocurrency
Remittances- The USD Coin (USDC) cryptocurrency can be used to send some funds across the borders too.
The investors not belonging to the U.S. who wish to gain exposure to the U.S. dollar can also add the USD Coin (USDC) cryptocurrency to their cryptocurrency investment portfolios.