How do Digital dollars work in Bitso?

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What is a Digital dollar?

A Digital dollar, or USDC, is a cryptocurrency with a fixed price that is backed or pegged to real-world US dollars at a 1:1 ratio and it operates on blockchain technology, mainly in the Ethereum network; making it attractive to transact in digital assets without price fluctuations common in other volatile cryptocurrencies such as Bitcoin.


How does the 1:1 ratio work?

We can say that, for every Digital dollar created, there must be an equivalent amount of US dollars held in reserve by the New York Mellon Bank. 

For example, if you send 10 Digital dollars to your Bitso wallet, you will see your balance increase by 10 Digital dollars; if you later decide to withdraw 5 Digital dollars, your target balance will be updated just the same**, that’s because Bitso offers a 1:1 conversion.


Does this conversion incur any fees?

 No, no additional fees are charged to achieve this 1:1 conversion.

How can I take advantage of Digital dollars?

  • They’re perfect for protecting your savings
  • You can buy Digital dollars directly from Bitso 
  • You can invest in Digital dollars and earn yields every Monday (2% annually)
  • You can make Bitso Transfers of Digital dollars from your app


How can I take advantage of the 1:1 conversion?

It will allow you to:

  • Deposit Digital dollars and trade in the same ledger
  • Deposit a Digital dollar and withdraw a different type of Digital dollar
  • Deposit a Digital dollar and withdraw US dollars

Plus any other combination you can think of! Also, remember that in Bitso there are no extra fees by doing this conversion.


Can I get in Bitso other types of stablecoins that are pegged to the US dollars in Bitso?

Yes, aside from Digital dollars or USDC, you can buy or sell TrueUSD (TUSD) and Tether USD (USDT); you can find them by tapping the Stablecoins filter from the Crypto section in your app.

Will I have sub-balances for each Digital dollar?

No. You will only have one Digital dollar balance. It is easiest to think about different types of Digital dollars as Deposit and Withdrawal methods for your Digital dollar balance at Bitso.

What about TUSD and USDT? They are also Digital Dollars, why don't you offer the same conversion for them?

At the moment, we do not provide the same conversion for TUSD/USDT, and we will continue to handle TUSD/USDT as it is currently on the platform. We will share more updates on this matter in the future.


For more info about Digital dollars, you can check out Circle, the issuing company of USDC.


** Blockchain fees apply for withdrawals.

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