Stellar Development Foundation announced its partnership with UNHCR to help refugees in Ukraine.
The decision to go with USDC may be due to USDT’s recent woes.

On December 15, the Stellar Development Foundation announced its partnership with the United Nations High Commissioner for Refugees (UNHCR) to provide cash assistance to Ukrainian refugees in the form of USD Coin (USDC) on the Stellar network.

The intended help would be provided through the use of Stellar Help Assistwhich is designed as a blockchain-enabled solution that aid organizations can deploy to provide assistance to those in need.

Read Stellar’s [XLM] Price Forecast 2023-24

USDC would be delivered through the utility and could be exchanged for local currency by refugees at any MoneyGram location.

Why USDC?

Stellar’s decision to source its utility from the USDC may be due to doubts over the reserves of the competing stablecoin Tether (USDT).

The past few months have been marked by a series of concerns about the condition of USDT reserves. There are ongoing concerns about whether Tether, the issuer of the stablecoin USDT, has enough reserves to fully cover the entire amount of USDT in circulation.

In September was Tether ordered by a U.S. judge in New York to produce “ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements,” including any transactions or transfers of cryptocurrency or other stablecoins by Tether, along with details of the timing of those transactions.

Furthermore, leading cryptocurrency exchange Coinbase, in a blog post on December 8, urged its users to convert their USDT to USDC for free. This represented a thinly veiled attack on USDT as Coinbase is a co-founder of USDC, demonstrating the battle for market share between these stablecoin issuers.

Justin Sun, the founder of the Tron blockchain, exacerbated the FUD against USDT on December 13 after he exchanged 15,432,715 USDT for 15,435,455 USDC and transferred it to Circle, the issuer of USDC.

Interestingly, despite the recent troubles, USDT has the largest percentage of the market share of stablecoins with a market cap of over $60 billion, data from CoinMarketCap showed.

If you have XLM

At the time of writing, Stellar’s own coin XLM changed hands at $0.08203. Still affected by the unexpected fallout from FTX, its value is down 11% over the past month.

The assessment of XLM on a daily chart revealed a serious decline in coin accumulation in recent weeks. Core indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) were lower than their respective neutral regions at press time.

Similarly, the on-balance volume of XLM was in a downward trend pegged at 21.825 billion, indicating the decrease in XLM accumulation.

Source: TradingView





This post Why Stellar [XLM] USDC Chosen to Power Its New Aid Initiative?

was published first on https://ambcrypto.com/why-stellar-xlm-chose-usdc-to-power-its-new-aid-initiative/

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