According to official data, in just one week, Circle issued 1.9 billion USDC, redeemed 1.8 billion USDC, and increased the circulation of USDC by 100 million.
As a digital currency equivalent to the US dollar, is the increase in its circulation bad for the US dollar?According to the butterfly effect, will it have any impact on the global economy?
Some ** began to chase after the wind again and began to promote the crisis of the dollar. In fact, USDC, as a digital currency, is only pegged to the US dollar, and does not set off big waves.
USDC is in relation to the US dollar
USDC is just a digital currency, which is a digital currency based on blockchain technology. It is issued by Circle and pegged to the US dollar, which means that each USDC corresponds to a value of 1 US dollar.
Importantly, USDC's issuance and trading follow the rules of the blockchain, which is decentralized, transparent, and secure.
Peculiarities of USDC
Since USDC follows the rules of the blockchain, decentralization and security and transparency are a feature.
As a stablecoin, USDC provides a new type of asset equivalent to the US dollar, which investors can use for cross-trading and investment.
However, USDC's trading and issuance rules still need to be recognized and supported by more regulators and the market to ensure their compliance and stability.
uThe impact of the 100 million increase in SDC circulating on the US dollar
USDC is a stablecoin pegged to the U.S. dollar, which has an equal value to the U.S. dollar. The increase in the amount of USDC in circulation may have an impact on the exchange rate of the US dollar.
Theoretically, when the circulating supply of USDC increases, the amount of USD** in the market decreases relatively, which may lead to the appreciation of the US dollar.
Of course, this is just a theory, and USDC is just an increase of 100 million, don't forget what a dollar is?
The U.S. dollar is the world's most important reserve currency. The United States is one of the largest economies in the world, and its economic size and strength make the US dollar the world's most important ** and investment currency.
On the other hand, the U.S. dollar has the world's most important financial markets and financial institutions, which provide investment opportunities and financial services to investors around the world, which is conducive to further strengthening the position of the U.S. dollar.
At the same time, the United States** and the Federal Reserve have been taking steps to confirm the value and credibility of the dollar, as well as the influence of the currency.
The increase of 100 million in USDC really can't set off a big storm in the face of the US dollar. But it is still necessary for investors to be cautious and pay attention to currency flows.
Remember the butterfly effect: a butterfly in South America flapps its wings, and the result can trigger a tornado in Texas, USA.
And this time, it's not a butterfly, it's 100 million USDC.