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What is the USDC and How Can it Improve International Money Transfers?

Posted by DTransfer on Mar 31, 2021 6:02:07 PM

As we continue to immerse ourselves in the conveniences of the digital realm, we have not yet fully embraced (or maybe appreciated) the possibilities it presents when it comes to digital money. For thousands of years, money has played an integral part of human advancement, facilitating the ability to trade and cooperate on tremendous scale. Although our digitally driven societies have made considerable improvements to the ways we make international money transfers with products like PayPal, the foundational infrastructure still fails to deliver the seamlessness found in other areas of the digital milieu, especially on the international level. 

The next phase of the internet is poised for significant progress with the Internet of Value (IoV). IoV introduces the infrastructure where individuals can exchange value instantly and seamlessly without obstruction from the physical world. Obstructions refer to things that slow down the value exchange process - banks, regulators, physical money - that directly (or indirectly) cause the process to be slow, convoluted and expensive. Thanks to technological developments in blockchain and decentralized technology, digital money seems to have found a place it can call home. 

DTransfer is one of these places, enabling international money transfers to be smooth and near-instant on a global level. The launch of USDC signifies an important facet of this framework, enabling fiat currencies to move in a digital form to allow fast, transparent and secure transactions to take place intercontinentally at a fraction of the price that currently plagues cross-border transfers. 



USDC and stablecoins

The USD coin (USDC) epitomizes a functional step forward into the world of digital money. Developed by Centre Consortium, a collaboration between Circle Internet Financial and Coinbase, USDC is a stablecoin. Commonly referred to as a fiat-backed or pegged token, stablecoins’ value are pegged to the price of a fiat currency in order to circumvent volatility and instability observed in other cryptocurrencies. 

USDC stablecoin   

(Source: Blockdecoded.com)

This 1:1 ratio ensures USDC’s value mirrors USD, enabling a digital representation of the US dollar to move seamlessly, similarly to the way content is shared and data exchanged ubiquitously across the internet. Although there are other stablecoins in circulation, USDC is issued by regulated financial institutions and fully backed by reserve assets, making its appeal the stability and security that is currently lacking in other stablecoins. Although established financial institutions are planning to distribute fiat-backed cryptocurrency, USDC is the world’s leading digital dollar stablecoins with $9.4 billion in circulation at the time of writing.

USDC and instant international money transfers

USDC poses a huge opportunity for more efficient cross-border payments. Its widespread adoption and deep-seated global liquidity makes it the ideal asset to exchange and transact the US dollar around the world. As international transfers are plagued by inefficient infrastructure and high fees, stablecoins like USDC represent a powerful disruption in the fundamental operations of modern value exchange.

DTransfer to integrate USDC for efficient B2B payments

DTranfer plans to utilize USDC in its international payment solution in order to enable businesses to access, transfer and exchange the US dollar more effectively on a global scale. USDC was introduced on the Stellar Network this February, giving DTransfer the opportunity to leverage the stablecoin as an effective asset for exchanging the US dollar. Businesses continue to encounter challenges surrounding international money transfers, especially since many enterprises look to move large amounts of money on a recurring basis. 

Bigger amounts mean higher fees causing formidable overhead. Many small and medium sized businesses struggle to operate across borders as the technological infrastructure to ensure productive international transactions is either non-existent or incredibly expensive. DTransfer’s solution brings the efficiency of the digital world into the hands of businesses. With the creation of digital assets like USDC, DTransfer can continue to ensure that businesses around the world can operate borderless, pushing the money evolution and the way we exchange value forward.

Want to explore the ways DTransfer can help your business? Ask us for more information about DTransfer’s capabilities and follow us on  Twitter and LinkedIn to stay updated on our progress. 

 

Topics: Stellar, Blockchain Technology

DTransfer

Written by DTransfer

DTransfer is a cross-border B2B payment solution that allows companies to make local or global payments instantly through one convenient platform while reducing costs and enabling business growth.