I am all in favour of accepting stablecoin at collateral for minting kBTC, however I would much prefer a Kusama native coin: USDT or aUSD.
xcUSDC is a bridged token, and this would introduce a lot of dependency into kintsugi.
@timbotronic excellent point. Maybe to add: having USDC does not exclude any of the other stablecoins to be added in the future.
For aUSD there is a need to model it a bit better since there is a circular dependency due to plans of adding kBTC as collateral for aUSD first.
USDT doesn't really have a lot of liquidity yet.
At the current stage, xcUSDC seems to be the easiest to add option.