USDC, the stablecoin developed by Circle in collaboration with Coinbase. Officially launched in October 2017 by the CENTER consortium (which includes its own circle and coinbase), this currency has quickly become central to the growth of the well-known exchange platform; through USDC, in fact, users can keep their savings in custody on Coinbase, receiving in exchange for interest and, through the use of the card launched a few months ago, have an operation very similar to that of a bank account. Particularly appreciated by the decentralized exchanges, which have almost immediately provided support, USDC is an extremely versatile stablecoin because it is compatible with the ERC20 standard of ethereum; the quality with which this coin is made, together with the security it is able to offer, have quickly made it, in just one year, the second stablecoin of the market by capitalization (after USDT) and it must be admitted that this project, in little less than two years of life, the road has made it and also a lot.
Suffice it to say that just last Wednesday, after having disbursed a further 2.6 million lire, USDC reached a new historical record with 22.5 million US dollars of loans in the form of loans. More generally, however, it is precisely the decentralized loan market that has exploded over the last year, touching the astronomical figure of 154MLN dollars in total loans from all DeFi platforms, a record set a few weeks ago, on 21 November last to be precise. If we consider that all this has happened with difficulty within a year, here we begin to realize the true potential behind this technology; even if 154 million dollars are not such an important figure, if compared to the total value of the loan market, it is not difficult to imagine that, at these growth rates, DeFi platforms will soon become a formidable competitor for banks and will gradually steal them also this market. At that point what will the banks remain as we have known them up to now? Lost the current accounts due to the cryptocurrencies, which allow us to have the same operations that a bank offers us but at no cost and without any restrictions whatsoever, lost loans and insurance what will the banks do? What will they sell? What services will they ever offer?
Clearly who knows the blockchain industry knows well the answer to these questions, simply the banks will not be able to survive the collision and will end up extinct, probably accompanied by financial and insurance companies. Mind you, any of us could already live without a bank account today, without access to loans and without taking out insurance products, but from here to imagine a world where banks, finance and insurance simply do not exist anymore would not be too difficult.
