USDC & DXY (dollar index) - What's the difference?

USDC and DXY are completely different things. The USDC is a cryptocurrency, a stable coin pegged to the US dollar, and the DXY is an index that measures the value of the US dollar against a basket of other major global currencies. USDC (USD Coin): What is it: USDC is a stablecoin, that is, a cryptocurrency designed to maintain a stable value pegged to a specific fiat currency, in this case, the US dollar. Collateral: The USDC is backed by reserves consisting of US dollars held in bank accounts. Goal: The goal of the USDC is to provide users with the opportunity to use cryptocurrencies with a stable value similar to the dollar for transactions and investments. Issue: The USDC is produced by Circle. DXY (US Dollar Index): What is it: The DXY, also known as the US dollar Index, is an indicator that reflects the value of the US dollar against a basket of six major world currencies: the euro, the Japanese yen, the pound sterling, the Canadian dollar, the Swedish krona and the Swiss franc. Appointment: DXY is used to measure the overall strength of the dollar in the global market. Calculation: DXY is calculated as the weighted average of the exchange rates of these currencies relative to the dollar. Analysis: An increase in DXY indicates a strengthening of the dollar, while a decrease indicates its weakening. The main differences: Type: USDC is a cryptocurrency, and DXY is an index. Purpose: The USDC is used as a means of payment and value storage, while the DXY is used to analyze and evaluate the strength of the dollar. Collateral: The USDC is backed by the US dollar, while the DXY has no real collateral. Relationship: DXY can affect the value of the USDC because the USDC is pegged to the dollar, but this is not a direct impact.