You might have been here before, where you have to decide between USD and a stablecoin like USDC. If you haven’t, it is only a matter of time. This article hopes to answer an age-old question for freelancers. It is a choice between two great payment options.

Many freelancers are already familiar with USD transactions, especially if they work with international clients. It is stable, trusted, and widely used. Meanwhile, USDC is relatively new to users, but it has excelled in enabling faster and cheaper transfers using blockchain technology. However, there is more to this comparison, and we will outline it in this article to help you make a better choice.

Also read: How USDC is revolutionising international money transfers

What is USDC and how does it work?

The US dollar needs no introduction. It is the world’s most widely used currency and the official currency of the US. Freelancers often receive USD payments through bank transfers (SWIFT or ACH), online payment platforms, direct card payments, or cash pick-ups.

USDC is a stable digital currency (stablecoin) that is pegged 1:1 to the USD. This simply means every USDC has an equivalent USD backing it. Freelancers can receive USDC payments through crypto wallets or platforms like Grey, which simplify the process by providing USDC wallets and instant conversion into local currency.

Benefits of receiving payments in USD

These are some of the benefits of receiving payments in USD:

• Universal acceptance: Many local and international banks, as well as payment platforms, support USD transactions.
• Stability: USD isn’t subject to volatility like most other currencies..
• Regulation and security: Banks and established platforms provide strong protection.
• Familiarity: Most freelancers and clients are already comfortable working with USD accounts.

Drawbacks of receiving payments in USD

USD is a solid choice, but it does have some drawbacks. Here are the main ones:

• High fees: USD transactions are usually very expensive. Between transaction fees, conversion fees, intermediary bank charges, and other fees, you can incur significant losses over time.
• Delayed payment: International transfers may take 2–5 business days to complete.
• Hidden exchange rates: Many platforms add conversion margins or markups that eat into freelancers’ earnings.
• Limited access in some countries – In certain regions, receiving USD directly into local accounts can be complicated.

Also read: Cheapest way to receive USD as a freelancer

Benefits of receiving payments in USDC

Freelancers and clients are choosing USDC for several reasons, including:

• Low cost: Blockchain transactions often cost less compared to transactions made through traditional banks using USD.
• Payment speed: USDC transactions are swift and often reflect within minutes.
• Fewer restrictions: USDC transactions have fewer restrictions because they don’t go through intermediary banks.
• Transparency: Transactions are traceable on the blockchain and can’t be altered.
• Easy conversion: Platforms like Grey converts your USDC to USD instantly, so you don’t have to worry about manual exchanges.

Drawbacks of receiving payments in USDC

USDC transactions are not perfect. Here are some drawbacks:

• Digital wallets issues: Some freelancers may find the setup challenging. Verification and onboarding can be cumbersome.
• Regulatory uncertainty: In some countries, the use of cryptocurrency is restricted.
• Not as widely accepted: Stablecoins are difficult for new users to understand, which may affect their acceptance.
• Dependence on third parties for cash-out: While USDC is stable, freelancers still rely on platforms and third-party agents to convert it into local, spendable money.

Also read: USDC vs. other stablecoins: what's best for global transactions?

USD vs USDC: Which is better for freelancers?

Both USD and USDC have their strengths, so the best choice depends on what matters most to you. If you value security and simplicity, USD is a good fit. If you want lower fees and faster access to your money, USDC might be better.

At Grey, we don’t discriminate. Whether you’re for USD or USDC, we have your back. With low fees, favourable conversion rates, and swift transaction processing, Grey helps freelancers manage USD and USDC transactions efficiently.

Sign up on Grey today to manage your freelancer earnings efficiently.

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