Bullet Points:
-Circle published a recap of 2022 and said it had kept its promise of dollar parity for USDC
-The company has redeemed $213 billion since its launch in 2018, and 80% of the asset reserves are 3-month U.S. Treasuries
-The future of „digital dollars“ looks bright with the growing consensus in favor of well-regulated and trusted offerings
Circle recently published a report on the state of the USDC economy, and in the report they devoted a section to reminding readers that the USDC stablecoin is always 1:1 redeemable for US dollars. This is a promise that Circle has kept since the launch of the USDC stablecoin back in 2018, and despite the challenging year of 2020, Circle has managed to keep this promise.
The report emphasized that this was possible due to the company’s prudent management of USD assets backing the token. 80% of the asset reserves relate to 3-month U.S. Treasuries, which are among the most price-stable and liquid assets in the world. The remaining 20% is held as cash across eight different U.S.-regulated banks. This helps to ensure the dollar parity of the USDC stablecoin.
The report also highlighted the growing consensus in favor of „digital dollars“ and the promise of well-regulated digital dollars like USDC. Digital dollars offer things that would not be possible with money if it remained in physical form and only traveled on largely-closed networks or analog rails.
The future of digital dollars looks bright, and Circle is regulated and licensed under U.S. federal and state money transmission laws. This helps to ensure that the USDC stablecoin remains a safe, trusted and reliable digital currency. With this in mind, the report concluded that the future of digital dollars looks bright.