EU delisting of USDT causes shock: What is the difference between USDC and USDt?

The EU's move to remove USDT (Tether) will undoubtedly have a profound impact on the cryptocurrency market. This decision not only concerns the fate of USDT in the EU, but also affects the nerves of the entire cryptocurrency ecosystem.

Tether (USDT), one of the world's top stablecoins with a market value of $139.7 billion, may not be able to survive in the EU after December 30, 2024.

USDT's influence is not covered up. It is much stronger than those juniors of Circle, and even big guys like Nike and UPS can't compare to it. From small technology companies in Argentina to big investors on Wall Street, USDT is used all over the world. But why can't it survive in the EU? To put it bluntly, the EU has issued a new MiCA rule, requiring stablecoins like USDT to abide by the rules, obtain licenses, and submit white papers. But USDT, they just didn't listen, and the result is - it was banned! This is a big deal, liquidity will decrease, volatility will increase, and those institutions that want to make a good living will also have a headache. Circle is smart, it has embraced MiCA's thighs early, obtained a license in Paris, and promoted USDC as a new compliant and safe choice. In this way, the euro stablecoin will be popular, and USDC will also go to the sky. MiCA paved the way for the future of web3, but USDT's operation is incomprehensible. Did it not fancy the EU, or deliberately avoided supervision and went to other places to develop? Our users and investors in the EU have to open their eyes. When choosing a stablecoin, you have to look at compliance, security, and trust, not just the exchange rate. This is a big deal about the future of our crypto world. If you have USDT or are planning to try stablecoins, you have to think about USDC. This is a new choice that is compliant and future-oriented. Don't wait until it is banned and regret it.

How many people know the difference between USDC and USDT?

Both USDC (USD Coin) and USDT (Tether) are stablecoins pegged to the US dollar at a 1:1 ratio, but they differ in many aspects:

1. Issuing entity and supervision:

USDC is jointly issued by Coinbase and Circle, and is regulated by US financial regulators with high transparency.

USDT is issued by Tether Limited, and has historically had many transparency issues. Although it claims that each USDT is backed by US dollar reserves, it lacks independent audits and has low transparency.

2. Reserves and transparency:

USDC's reserves are backed by cash and cash equivalents in the U.S. banking system, and audit reports are regularly issued to prove the adequacy of its reserves.

USDT's reserve structure is opaque. Although it claims to have US dollar reserves, it lacks third-party audits, and its transparency and trust are low.

3. Blockchain compatibility:

USDC is mainly based on the Ethereum blockchain and follows the ERC-20 standard, but it also runs on other blockchains, such as Algorand, Solana, etc.

USDT is issued on multiple blockchains, including Ethereum, Tron, Omni, etc., and has wider compatibility.

4. Market acceptance and liquidity:

USDT has entered the market earlier and has higher liquidity, so it is widely accepted and used.

Although USDC has lower market acceptance and liquidity than USDT, it has gradually gained market trust due to its transparency and regulatory compliance.

5. Security:

USDC is considered to be relatively high in terms of security due to its transparency and regulatory compliance.

USDT has potential risks due to transparency issues, such as insufficient reserves or audit issues.

6. Purpose and function:

Both can be used for financial activities such as trading, investment, lending, and mortgage.

Due to its transparency and regulatory compliance, USDC may be more suitable for financial activities that require high security and trust.

In summary, although both USDC and USDT are stablecoins, they have significant differences in issuing entities, transparency, regulatory compliance, blockchain compatibility, market acceptance and security. Users should decide based on their needs and risk tolerance when choosing to use them.