Why is CUSDC More Dominant Than Thai Baht?
Introduction
The significance and popularity of cryptocurrencies have been increasing rapidly in recent years, especially during the COVID-19 pandemic. Currencies such as CUSDC, USDT, and Bitcoin have become more common in the global digital world. Despite being a digital currency, CUSDC is dominating the Thai market, and people prefer it over Thai Baht. This article discusses the reasons behind this phenomenon.
What is CUSDC?
CUSDC, or Compound USD Coin, is a digital currency or cryptocurrency, with its value equivalent to that of the US dollar. It is an ERC-20 token supported by Ethereum blockchain that can be transferred or exchanged globally without the need for intermediary financial institutions. Its value is backed up by reserves of US dollars, with each coin being pegged to one dollar.
History of CUSDC
CUSDC was created by Compound in 2018. Compound is an algorithmic protocol that allows users to earn interest on their digital assets and allows lenders to earn interest on supported digital assets. CUSDC is one of the supported digital assets, and it is used by Compound as collateral to borrow other cryptocurrencies.
Advantages of CUSDC Over Thai Baht
Global Acceptance
CUSDC is widely accepted globally, whereas Thai Baht is only accepted in Thailand. As CUSDC is a digital currency, it can be transferred or exchanged globally, making it more practical and convenient for international transactions.
Decentralized System
Unlike Thai Baht, which is managed and regulated by central banks, CUSDC is a decentralized digital currency. This means that there is no central financial institution governing the use and transactions of CUSDC, making it more independent and secure.
Inflation Resistance
Inflation is a significant concern for traditional currencies like Thai Baht, especially during economic crises. However, the value of CUSDC is tied to that of the US dollar, which is relatively stable and less prone to inflation.
Fast and Secure Transactions
CUSDC transactions are faster and more secure than Thai Baht transactions. As CUSDC is a digital currency, it uses blockchain technology to process transactions, ensuring that they are secure and almost instantaneous. On the other hand, international transactions involving Thai Baht may take several days to clear, depending on the banks involved.
Is CUSDC the Future of Currency?
The increasing popularity and acceptance of CUSDC indicate that it could become a significant player in the future of global currency. With its faster and more secure transactions, independence from central financial institutions, and global acceptance, it could revolutionize the way people exchange value around the world.
Conclusion
CUSDC’s dominance over Thai Baht can be attributed to its practicality, decentralization, inflation resistance, and faster and secure transactions. These advantages make it an attractive choice for individuals and businesses that want to handle transactions on a global scale.
FAQs
What is CUSDC?
CUSDC, or Compound USD Coin, is a digital currency or cryptocurrency whose value is pegged to that of the US dollar. It is an ERC-20 token supported by Ethereum blockchain that can be transferred or exchanged globally without the need for intermediary financial institutions.
Is CUSDC accepted in Thailand?
CUSDC is not widely accepted in Thailand, but it is accepted internationally, making it more practical and convenient for international transactions.
How is CUSDC different from Thai Baht?
CUSDC is a decentralized digital currency, while Thai Baht is regulated by central banks. CUSDC transactions are faster and more secure, and it is inflation-resistant compared to Thai Baht.
What is the future of CUSDC?
The increasing popularity and acceptance of CUSDC indicate that it could become a significant player in the future of global currency.
How can I buy CUSDC?
CUSDC can be purchased through cryptocurrency exchanges and trading platforms.
Is CUSDC secure?
Yes, CUSDC transactions are highly secure as they use blockchain technology to verify transactions, ensuring that they are valid and tamper-proof.
What are the benefits of CUSDC over Thai Baht?
CUSDC is global, decentralized, and inflation-resistant, making it more practical and convenient for international transactions than Thai Baht.
References
- Compound. (n.d.). Compound USD Coin (CUSDC). Compound. https://compound.finance/assets.
- XE. (n.d.). USD/CNY Chart. XE. https://www.xe.com/currencycharts/?from=USD&to=CNY.
- Chang, S. (2021, July 12). Cryptocurrencies explained: How blockchain technology is changing the world we know. CNBC. https://www.cnbc.com/2021/07/12/cryptocurrencies-explained.html.
