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What happens if the dollar goes up and you have USDC?

Equipo BitsaveAuthor
May 22, 20263 mins de lectura min read
What happens if the dollar goes up and you have USDC?

First: what is USDC?

USDC is a digital dollar.

Its goal is to maintain a close 1:1 relationship with the US dollar.

That is to say:

  • 1 USDC ≈ 1 US dollar

Many people use it to:

  • Save in digital dollars

  • Protect yourself from devaluation

  • Move money internationally

  • Maintain stable digital balance

So... what happens when the dollar rises?

Imagine this:

Day 1

  • Exchange rate: $17 MXN per dollar

  • You have 100 USDC

Your balance is worth approximately:

$1,700 pesos

Time after

The dollar rises to:

$20 MXN per dollar

Your same 100 USDC is now worth approximately:

$2,000 pesos

Did you earn more dollars?

No.

You still have:

100 USDC

What changed was the value of the dollar against the Mexican peso.

Why is this happening?

Because the Mexican peso lost value against the dollar.

So when you have assets tied to the dollar:

  • Your money can retain more value in pesos

  • The impact of devaluation can be reduced

  • Your exposure to the Mexican peso decreases

Does this mean that USDC always “goes up”?

Not necessarily.

USDC seeks to maintain the value of the US dollar.

What is constantly changing is:

The peso/dollar exchange rate.

If the dollar rises against the peso:

  • Your USDC is worth more pesos.

If the dollar falls against the peso:

  • Your USDC is worth less pesos.

Why do many people use digital dollars?

Because they allow access to the dollar in a digital and simple way.

Without:

  • Open accounts in the US

  • Handle physical cash

  • Make complex international transfers

Real example: inflation and devaluation

In Latin American countries, many people seek to protect part of their money because:

  • Prices go up

  • The peso loses purchasing power

  • The dollar is often used as an international reference

That is why more and more people use digital tools to keep part of their savings tied to the dollar.

And what is the difference between USDC and buying physical dollars?

Physical dollars

  • Cash

  • Risk of loss or theft

  • Less practical to move digitally

USDC

  • Digital

  • Transferable

  • Accessible from apps

  • Fast to send or convert

How does this work on Bitsave?

In Bitsave you can:

  • Buy USDC

  • Deposit pesos via SPEI

  • Automatically convert to digital dollars

  • Maintain digital balance

  • Withdraw whenever you want

  • Buy other assets available within the app

All from an experience designed for non-technical users.

Important: USDC is not guaranteed return

USDC does not promise fixed returns.

What many people are looking for is:

exposure to the US dollar.

The value in Mexican pesos may change depending on the exchange rate.

So what happens if the dollar goes up and you have USDC?

In simple terms:

Your digital dollars may be worth more Mexican pesos.

But:

You still have the same amount of USDC.

What changes is the value of the dollar against the peso.

Quick summary

If the dollar rises:

  • Your USDC is usually worth more pesos

If the dollar goes down:

  • Your USDC is usually worth less pesos

USDC seeks to track the value of the US dollar, not generate guaranteed returns.

Protect your money with digital dollars from $250 MXN →

References

[1] Circle. “USDC Transparency and Reserves.”
https://www.circle.com/transparency

[2] Bank of Mexico. “FIX exchange rate.”
https://www.banxico.org.mx/

[3] Investopedia. “What Is a Stablecoin?”
https://www.investopedia.com/stablecoin-5216973

Important notice

This content is informational and does not constitute financial, tax or legal advice.

Digital assets may involve risks, including volatility, regulatory changes and technological risk.

Before making financial decisions, consult a professional.

Virtual assets are not legal tender in Mexico and are not backed by the Federal Government.