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The Chilean exchange for bitcoin (BTC) and other cryptocurrencies, Buda.com, added the stablecoin
USD Coin (USDC) to its catalog of digital assets. As of yesterday, August 24, local traders, as well as those in Argentina, Colombia and Peru, can now trade with the stablecoin on its exchange platform.
looking to hedge against potential bouts of volatility. In addition to USDC, the exchange also offers support for BTC, ethers (ETH), bitcoin cash (BCH) and litecoin (LTC).
USDC credits on Buda.com are free of charge. That is, any merchant can send funds without paying fees. In the case of withdrawals, users will have to honor a 5 USDC fee at the time of settlement, the exchange said
on its website. The cost applies to the four South American countries in which the company operates. These are the fees Chilean users must pay when withdrawing funds from the exchange. Credits are exonerated. Source: Buda.com
In relation to the fees for trading within the platform, these vary according to the type of order and volume traded. For instant purchases and sales, the commission is 1.2%. For advanced exchanges the fees are variable and range from 0.2% to 0.8%.
Choosing a stablecoin with backing
About the launch of USDC exchanges, Guillermo Torrealba, CEO of Buda.com, explained that the company delayed in giving this
step because of the analysis they conducted on the stablecoin. One of the main concerns of the company was to adopt a stablecoin that was sufficiently backed.
“After months of in-depth market analysis, we decided to implement the USDC stablecoin, a currency created by Circle and Coinbase, on our platform. These are two companies regulated in the United States that meet all the conditions of auditability, liquidity and, above all, projection,” the executive clarified through a press release.
The stablecoin chosen by Buda.com is an ERC-20 token that runs on the Ethereum network. At the time of publishing this article, USDC is the eighth largest cryptocurrency on the market, by market capitalization. According to figures from CoinGecko, USDC exhibits a total of $27 billion.
By tokenizing the dollar with USDC, Buda.com traders can operate in a variety of ways, for example: sending remittances, exchanging their cryptocurrencies for local currency in Chile, Argentina, Colombia or Peru, making investments and protecting themselves against possible market crashes.
CryptoNews recently reported that Buda.com was implementing a new system for sending and receiving remittances. The solution is the company’s bid for faster transactions through Bitcoin’s Lightning network.