Circle updates USDC to version 2.2

January 16, 2024 at 11:29 am

News

USD Coin (USDC) stablecoin issuer Circle has updated its stablecoin to version 2.2.

According to a new blog post via Circle, six new changes to the stablecoin smart contract will be implemented in version 2.2 for each supported Ethereum Virtual Machine (EVM) blockchain.

“Starting today, we’ll begin a phased rollout of the v2.2 upgrade to USDC and EURC on testnet and mainnet for each supported blockchain, which we plan to complete over the next few months.”
Circle

The update brings many changes including improved gas efficiency, support for account abstraction and smart contract wallets, and increased currency resilience when dealing with forks.

Most changes also reduce transaction costs for specific functions. Specifically, the update should improve the performance of the denylist checking feature, which allows Circle to determine which wallets can make transactions and which cannot, by Circle’s denial-of-access policy.

Much of the update is aimed at reducing transaction costs. The developers expect that with the upgrade, they will be able to save 6-7%. Burning and minting USDC on different chains also holds 3-4%.

Circle CEO Jeremy Allaire said he expects stablecoin laws to be passed in the U.S. in 2024. According to Allaire, the chances of adopting stablecoin regulations are now “very high.” CEO Circle points to an emerging trend around the world towards approval of laws for the crypto industry.