- USDC was launched by CENTRE, an NGO jointly founded by crypto exchange Coinbase and fintech firm Circle, as an ERC-20 token. This article is about where to buy USDC in the Philippines as well as top usecases.
- One of the green flags of the USDC ecosystem is that it is audited monthly by Grant Thornton LLP, an independent accounting firm.
- The token is also compliant with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Stablecoins are cryptocurrencies whose value is pegged to another asset’s price, like the U.S. dollar, other national currencies, gold, and even other cryptocurrencies.
The first stablecoin launched was recorded in 2014. Tether, or USDT, was the first stablecoin to be listed on an exchange. Some reports claim that USDT is the inspiration for other stablecoins that are pegged to the U.S. dollar. USDT has the third largest market cap in the crypto space, next to Bitcoin (BTC) and Ether (ETH).
But looking at the list of top cryptocurrencies in terms of market cap, another stablecoin has established its name in the top 10, the USD Coin (USDC).
USDC Key Facts
USDC was launched by CENTRE, an NGO jointly founded by crypto exchange Coinbase and fintech firm Circle.
It was initially launched as an ERC-20 token, which means that it is compatible with all dApps based on Ethereum. But as time passes by, USDC is also compatible in a few blockchains, including Algorand, Solana, and Tron.
Why Buy USDC?
One of the green flags of the USDC ecosystem is that it is audited monthly by Grant Thornton LLP, an independent accounting firm. This is to ensure that every token in circulation is backed by a corresponding U.S. dollar in a bank account.
For context, every USDC token is minted when an entity deposits a U.S. dollar into their Circle account. And when it is deposited in exchange for a U.S. dollar, the token is burned to ensure a balanced ratio between the token in circulation and the fiat reserves.
However, because its deposits are bank-based, USDC was among the cryptocurrencies that were affected by the meltdown of the Silicon Valley Bank in March. It is because some of the token’s cash reserves were parked at Silicon Valley Bank, which was shut down by regulators after suffering a run on deposits.
The USDC/USDT trading pair dropped as low as $0.94 on Kraken, the lowest price since April 2021.
Read more: News Bit: USDC Depegs From One Dollar
Moreover, since USDC was launched by two U.S.-based registered companies, the token is also compliant with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. It is also said to follow the Travel Rule, which requires financial institutions to share information about the originators and beneficiaries of cross-border payments and remittances.
This makes the stablecoin one of the best choices for cross-border transactions. In our USDT 101 article, we discussed that stablecoins are the better choice for out-of-the-country payments because their fiat values are not volatile and they offer faster and cheaper transactions.
As a token that is compatible with multiple blockchains, more developers can adapt it to be used as their in-app utility token. dApps can use USDC for in-app purchases. Because it is a stablecoin, users can benefit from it not being volatile and, thus, a more fixed pricing.
How to Buy USDC in the Philippines
Due to its availability, USDC is being offered by local exchanges here in the country—Coins.ph, Coins Pro, PDAX, Maya, and GCash’s GCrypto. Known international exchanges also offer USDC, like Binance, OKX, and Bybit.
To be able to buy, trade, sell, and transfer USDC on these exchanges, users are advised to verify their accounts by submitting the requirements needed, most commonly including valid ID, selfie verification, phone number, email address, and other personal information.
Once an account has been verified, users can start cashing in and purchasing USDC. Normally, USDC comes with the USD trading pair. Just choose this trading pair and wait for the asset to be loaded into the wallet.
After that, to transfer the USDC to another wallet, like for remittance or offshore payment, make sure that the wallet address is correct and compatible with receiving the stablecoin.
There are also exchanges that offer staking services so users could earn from just holding,, like Binance Earn.
Coins.ph also has an ongoing HODL and Earn USDC promo.
Regulatory Landscape: USDC Trading in the Philippines
Though USDC aligns with AML and CTF regulations and its parent companies are registered entities in the U.S., the token and its firm are not registered in the country as per the SEC. However, it is not illegal to trade USDC in the Philippines.
So for more secure transactions, just deal with registered VASPs in the country, so whatever fraud may happen, which we do not wish, there will be accountability for it.
Practice due diligence, do your own research, and always keep yourself with news about USDC here on BitPinas.
This article is published on BitPinas: USDC Philippines Guide | Use Cases And Where To Buy USDC
- Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
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