United States-oriented cryptocurrency exchange Coinbase stated that the adoption of USD Coin has been conservative outside of the US, due to the result of international currency conversion fees, as reported by Cointelegraph.
According to Cointelegraph, in an October 20, 2022, statement, the exchange mentioned that there is currently three times more USDC purchased with US dollars in comparison to other currencies.
“Currently, 3x more USDC is bought with USD versus non-USD currencies. In part this is because, outside of the US, users usually have to pay fees in the process of converting their local currency into USDC, and this is a barrier to broader international adoption,” the statement highlighted.
On the basis of information by Cointelegraph, the US-dollar pegged cryptocurrency is reportedly the second-largest stablecoin in terms of market capitalisation under Tether. Coinbase emphasised that the utility of stablecoins such as USDC carries the potential to benefit residents in countries which need a currency that doesn’t fluctuate in value, is highly accessible and gives access to decentralised finance (DeFi). The exchange mentioned about aiming to develop more on-ramps for users to get access to USDC, and will be waiving fees for all customers who buy or sell USDC through usage of any fiat currency.
Moreover, Cointelegraph noted that in 2018, Coinbase along with payments technology company Circle partnered to develop the Centre Consortium for creation of USDC, which is reportedly the second-largest stablecoin behind Tether and fourth-largest cryptocurrency in terms of market capitalisation. Stablecoins such as USDC are considered to be a cheaper and faster way in comparison to traditional remittance systems for ensuring value transfer between parties. According to a Chainalysis report, use of stablecoins for remittances can help drive cryptocurrency adoption in Latin America. In September, Circle made the announcement that it would roll out the stablecoin across five additional blockchains including Polkadot, Optimism, Near, Arbitrum, Cosmos, among others.
(With insights from Cointelegraph)
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