Every creator thinks their creation is the best — and Circle, the USD Coin (USDC) issuer, is no exception. At the last World Economic Forum (WEF), Circle claimed that USDC is a dollar with superpowers. Will any of these superpowers allow it to dethrone Tether (USDT)? Let's find out.
The World Economic Forum (WEF) took place January 16-20 in Davos, Switzerland. At Davos 2023, more than 1,500 business and government leaders gathered to discuss the future of the global economy. Among these leaders was the Boston-based company Circle.
This WEF represented a golden opportunity for Circle.
For Circle, there is a need to re-establish the crypto narrative with an emphasis on inclusive growth. They also see sustainability as an essential factor for developing all digital currencies.
According to Circle's "State of the USDC Economy" report, USDC fulfills functions that the current banking system does not provide. For one thing, they consider USDC an all-digital dollar — and since the digital world doesn't rest, neither do they.
They also remarked that their transfers are immediate with minimal fees.
Finally, they used the opportunity to point out that they are fully backed 1:1 by U.S. dollars. USDC users have redeemed more than $213B in four years without problems.
They also explained that 80% of their reserves are in 3-month U.S. treasuries. Yet, by the end of January 2023, they will move 100% of their reserves to the Circle Reserve Fund, 100% owned by Circle.
Currently, USDC is closely following USDT. USDT ranks 3rd by market cap, and USDC is in 5th place. However, it is not a war — the intention is to make confidence in the stablecoins stronger.
