Why Does Coinbase Urge To Convert USDT To USDC?

Recently Coinbase made a post and tweet to urge USDT holders to convert their USDT to USD Coin (USDC). USDC holds the second position in stablecoins. USD Coin (USDC) is backed by cash and short-dated U.S. treasuries. But why does Coinbase become desperate to convert USDT to USDC?

Coinbase offers zero fees to encourage USDT holders so that they take this offer and convert USDT to USD Coin (USDC). There are mixed reactions on Twitter. Being transparent and trusted stablecoin, they don't need to become desperate to increase the user base.

People will choose what is best for them. People react to this in difficult ways, someone says it is always better to wait for the next promotion when they offer a 1 to 1.05 USDC conversion rate. 😉

Coinbase co-founded USD Coin (USDC) along with Circle in 2018. Now it becomes one of the popular stablecoins. Tether (USDT) is the first stablecoin although there are a lot of controversies around USDT. In spite of criticism and controversy, USDT still holds the first position among stablecoins.

Crypto exchange Binance stopped supporting USDC in November 2022. So you cannot use USDC in Binance anymore. And if you deposit USDC in Binance, it will automatically convert to Binance USD (BUSD). Looks like there is a war in stablecoins in order to gain the first position.

No doubt, there is risk in stablecoins. You cannot hold stablecoins and think everything is safe. Algorithmic stablecoin UST collapse is one big example. Coinbase mentioned USDC as the most trusted and reputable digital dollars. Is there any chance USDC will be Central Bank Digital Currency (CBDC)? Maybe we are using CBDC without realizing it.

It is clear that the central bank is working hard to launch CBDC. There are pilot programs. Not only one country but also many countries are working on it and testing CBDC. Cryptocurrency gives power back to the people whereas CBDC gives power back to the central authority.

Let's see what happens next. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

Follow me on Noise.App

Reference: 1