recently report Regarding the state of the USDC economy, the Circle has a section stating that stablecoins will “always” be 1:1 convertible to the US dollar.
Overall, 2022 was a difficult year for the USDC, with bankruptcy filings and censorship charges against stablecoins.
But in reaffirming its approach to the ecosystem and its outlook going forward, Circle said it has kept its fundamental promise of dollar parity despite last year’s industry-wide stress tests.
Moreover, with a growing consensus in favor of the “digital dollar,” the future looks bright for regulated and trusted services. According to the report:
“Promise of Well-regulated digital dollars like USDC are plentiful Things you can’t do with money It stayed in physical form and just continued its journey Mostly closed networks or analog rails. “
USDC can be redeemed “anytime”
According to Circle, the company has redeemed $213 billion since its launch in 2018. This is made possible thanks to the careful management of the USD assets backing the token.
On top of that, 80% of the reserves are related to 3-month Treasuries.most stable price and global liquidity. At the same time, the remaining 20% is held as cash in eight different US-regulated banks.
Furthermore, the circle Regulated and licensed in US states Remittance License and as a Money Services Business (MSB) with the U.S. Department of the Treasury
(KYC), Anti-Money Laundering (AML), and Financial Terrorism Regulations.
The user Monthly Certification from Accounting Firm Grant Thornton said the company has more dollar-denominated reserves than USDC tokens in circulation.
“We are a robust, risk-intelligent proactive and overall identification, assessment, mitigation, monitoring, Risk and control reporting for all businesses Product lines, features and processes. “
circle controversy
USDC is suffering reputational damage following the Tornado Cash sanctions imposed by the US Treasury Department and compliance with censorship orders by Circle.
At the time, ShapeShift CEO Erik Voorhees recommended that MakerDAO users convert USDC to another, more censorship-resistant stablecoin. Similarly, Ryan Adams of the Bankless Podcast said the US Treasury Department’s action was “the first shot of Big Brother’s attack on cryptocurrencies.”
Additionally, amidst the crypto contagion from the collapse of Luna, 3AC, Babel, and Celsius, rumors spread that Circle was also on the brink of collapse due to alleged exposure.
Rumors were quickly quelled after the release of the first USDC Reserve Assets Report in July 2022.
Commenting on censorship and account blacklisting, Circle CEO Jeremy Allaire said the company has a legal obligation to comply with requests from authorities investigating criminal activity.
