In a recent social media revelation, Jeremy Allaire, the front-man of Circle, stated that a whopping 70% of USD Coin (USDC) adoption is predominantly from overseas regions, contradicting the widely held belief that USDC is primarily favoured within American borders. Emerging markets and developing areas, especially in Latin America, Asia, and Africa, appear to be at the forefront of this digital dollar crusade.
This surge in USDC’s overseas adaption sat simultaneous to a noteworthy shrink in the USDC supply since 2023’s inception. The dip is largely credited to lessening demand and considerable redemptions. Last month saw the total redemptions tipping the scale over the issued coins by a significant $1.6 billion, putting the total redemptions at an immense $6.6 billion. Consequently, USDC, which is second to none but Tether (USDT) in its stablecoin market cap, is sitting at a 21% share with a total circulation of around $26.1 billion. CoinGecko data highlights a 50% contraction in USDC’s market cap since the previous year.
Interestingly, this internationally leaning adoption trend isn’t isolated to USDC. Tether’s Chief Technology Officer, Paolo Ardoino, has echoed similar sentiments about their stablecoin, USDT. He conjectured that USDT could serve as a crucial supportive instrument for developing nations and emerging markets.
Despite the overseas dominance, Allaire continues to push for USDC acceptance within the US legislature. In a video circulated by Circle, he urged the Congress to safeguard stablecoins and strengthen faith in virtual dollars, asserting that US dollar supremacy is under siege, thanks to the rising allure of foreign digital currencies. Allaire’s proclamation that the world is poised for a shift toward digital commerce – dollars, euros, or yuan – highlights the growing competition in this sphere.
Allaire maintains that the US has a crucial choice to make: continue to command the digital currency domain or cede the baton to other nations. In doing just this, he expanded Circle’s international banking and liquidity network by partnering with elite banks globally, creating a parallel with USDT’s international approach.
The balance leans more in favor of global commerce in digital monies, despite the apparent rivalry between stablecoin giants USDT and USDC. With international regions demonstrating a higher demand for these so-called safe and transparent digital dollars, it’s clear that the future of online currency is ripe for a global revolution.
Source: Cryptonews
