Squaring the Circle of Crypto and Fiat, USDC, and Circle Impact

  • Circle is the US company that manages the Stablecoin USDC.
  • Stablecoins are pegged with fiat currencies, and they are not as volatile as other crypto tokens.
  • Circle, through its Circle Impact, intends to bring a revolution in digital crypto commerce. 

Often while mentioning the word cryptocurrency to elders, you may have heard them calling it a “risky business and just another gamble”. They say this is true because crypto’s value has many crests and troughs, making it only an expert or rich-folk game that can understand its complexity and use it for an investment purpose. 

Stablecoins and Pegging

The high rates of fluctuations make crypto coins unsuitable for daily transactions of commodities, as the buyer or seller may fear that they may purchase or sell in more or less due to inflation. Also, crypto may lose its buying power, making it risky for merchants.

Stablecoins present a possible solution to the challenge of combining the benefits of Crypto coins, like security and decentralization, with the stability of Fiat currencies. Pegged cryptocurrencies are those whose value is linked to some fiat currency like USD, EUR, GBP, or any physical assets like Gold or Silver. Such tokens are called Stablecoins, and they were made to protect them from high volatility rates.USDC is one such stablecoin, which has a peg of 1-to-1, which means that 1 USDC (or token) is always equal to $1. 

The Literal Meaning in the Physical World

Buying USDC turns out to be the most secure way of converting your dollars to a digital token. You will have exactly the same number of tokens as you have dollars, and their value will always be equal to the market value of the currency.

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Harry has 15 dollars. He is interested in converting them into digital tokens but is unsure of the risks involved. He thus buys 15 USDC and keeps them in a digital wallet, as he would have in some bank account. He can withdraw those tokens at any time, and he would get 15$ back.

Circle, the company that manages the stablecoin USDC, always has a USD reserve in bank accounts, as stablecoins are in circulation.

Circle, Squaring off the Present Finance

Circle, a firm that manages USDC, has laid out its plans to innovate the already developing crypto market through USDC. Circle aims to remove the word cross-border from payments, making them as easy to use as words like e-mail,, video call, or texting. 

The Circle Impact

Launched in November 2021, it is an initiative by the Circle Group which aims in primarily three directions:  Financial Inclusion, Financial Literacy, and Humanitarian Response. Some insights on how the company aims to achieve these are discussed below.

Financial Literacy:

To make the youth aware of the changing financial times, and making them not mere spectators but participants, Circle has collaborated with HBCUs ( Historically Black Colleges and Universities) to provide digital financial knowledge. This step is to ensure that this revolution is globally accessible. Popular HBCUs are Howard University, Hampton University, Morehouse College etc. Some senior executives of Circle and Staff, who profess commendable knowledge in fields like Blockchain and Bitcoin, were happy to contribute to this.

Financial Inclusion:

As we learned that Circle keeps a reserve of USD in the bank, it decided to invest a share of this money to Community Banks and MDIs (Minority Owned Depository Institutions). Circle believes that these were ignored by the traditional financial institutions, and Circle is ready to back them. The exact amount is not yet disclosed, but it’s said to be a long-term goal.  

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Startups led by women or minorities are heavily invested by Circle with an aim to give them a fair chance through its crowdfunding investment platform SeedInvest. 

Humanitarian Response:

To make the process of providing aid and relief in times of need a corruption-free and rapid process, Circle aims to use USDC for it. It also has a Rapid Response Team that connects with several NGOs and Governments around the world, which spreads the knowledge of using USDC in humanitarian efforts.

Circle Account: 

Similar to a bank account, businesses can now open a Circle Account to keep their digital assets. Companies, especially small and emerging businesses, can now trade and commerce, invest or keep reserves in digital tokens, similar to keeping fiat money in bank accounts. Circle also provides interest on the tokens kept.

With programs and initiatives like this, Circle is ready to make USDC a household name and bring out a revolution in digital crypto payments.

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