On Thursday (8 December 2022), Coinbase announced that it had decided to make it easier for its “global retail customers” to convert Tether ($USDT) to USD Coin ($USDC), highlighting the latter’s good reputation without directing attacking the former.
According to Coinbase’s blog post, customers are looking for stability and trust in the midst of market volatility, and fiat-backed stablecoins can provide that. It goes on to say that some stablecoins have been put to the test, leading to a shift towards safer options, and naturally the one it recommends is the USD Coin ($USDC), which Centre, a consortium founded by Circle and Coinbase, introduced in October 2018.
This is why Coinbase says it decided to make it “more frictionless to switch” by “waiving fees for global retail customers to convert USDT to USDC.” Here are a few things, though, that Coinbase wants you to be aware of:
“No commission fee or spread for USDT to USDC conversions on Coinbase Simple Trade in eligible regions, until further notice. Conversion rate is determined at trade execution, and is subject to market volatility.“
Here’s Coinbase explaining how its customers can convert their $USDT to $USDC:
“To convert USDT to USDC, find your USDT holdings on the Assets tab of www.coinbase.com or your Coinbase mobile app. Tap Trade, then tap Convert. Enter the amount of USDT you’d like to convert and select USDC as the asset.“
Here are a few reactions from the crypto community:
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