- Asia-Pacific controls 29% of the global USDC digital currency value.
- USDC has been most helpful in remittances in emerging economies.
Stablecoin USDC is gaining traction in emerging markets, according to a new report by issuer Circle. Circle says that in 2022, approximately $130 billion of USDC flowed into Asia, with Asia-Pacific accounting for 29% of the global digital currency value. The amount compares to 22% for Western Europe and 19% for North America.
Apart from Asia, Circle says about 33% of Latin American consumers have paid using a stablecoin. Consequently, the region has received $562 billion in digital currency between 2021 and mid-2022.
Overall, Circle says blockchain transactions relying on its stablecoin have crossed $12 trillion since its introduction in 2018. That has also coincided with a 90% decline in stablecoins’ use in speculative trading in the last five years.
See Related: Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank
USDC Narrows Financial Gap In Emerging Economies
The growing adoption of USDC in emerging economies comes amid the need to narrow the financing gap and facilitate remittances. The circle report shows that the most significant volume of USDC flows into Asia comprises remittance transfers. The issuer also asserts that the stablecoin is helping Asia narrow its $510 billion trade finance gap, relating to a lack of liquidity in cross-border remittances and credit.
The flows into emerging economies are positive due to existing capital financing restrictions, which have hampered business financing. The economies are also remittance-dependent, prompting alternatives that have created a demand for stablecoins.
Conversely, Circle CEO Jeremy Allaire was quoted last year intimating a solid demand for USDC in non-US markets across Asia, LATAM, and Africa. Last week, Coinbase partnered with Yellow Card to enable USDC transactions across 20 major African economies. The move is expected to cement USDC’s uptake in emerging markets, focusing on tapping the remittances market and increasing economic freedoms.
