By Circle, a crypto issuer, reported a significant increase in remittances flowing through Asia via its USDC stablecoin. USDC is a cryptocurrency pegged to the value of the U.S. dollar and is backed by liquid cash and cash-equivalent assets. It has settled over $12 trillion in blockchain transactions since its introduction in 2018.
According to Circle, the Asia-Pacific region makes up almost a third of the value of digital currency worldwide. The report further stated that in 2023, $130 billion worth of USDC flowed into Asia, with the Asia-Pacific region accounting for 29% of all global digital currency value received. This surpasses North America at 19% and Western Europe at 22%.
It’s time.
The State of the USDC Economy 2024 Report has arrived, bringing new insights and a global perspective on $USDC and the internet financial system. The #OpenMoneyEra is bringing greater speed, accessibility, and innovation to the global economy. Read it now:… pic.twitter.com/68XQA1dkFK
— Circle (@circle) January 15, 2024
These volumes include remittance transfers, with a notable impact in emerging markets like the Philippines, where there is a large diaspora. In the report, Circle highlighted its partnership with Coins.ph, an exchange in the Philippines, aiming to capture some of the remittance business, valued at around $36 billion annually.
Circle highlighted the characteristics of the Asia-Pacific region, describing it as young, mobile-first, and wallet-ready. The report mentioned that nearly half of Asia-Pacific’s 1.8 billion online population is already using a digital wallet. Even among Southeast Asia’s unbanked population, the report suggests that digital wallet penetration could reach 58% by 2025.
The report also claims that USDC is contributing to closing the region’s $510 billion trade finance gap by providing liquidity for cross-border remittances and credit. This is particularly beneficial in emerging markets with capital outflow restrictions, where businesses often struggle to secure funding for international trade.
Circle highlighted the efforts of Taipei-based XREX, which leverages USDC to build financial connections between countries, capitalizing on deep dollar liquidity in Taiwan and addressing dollar shortfalls in other Southeast Asian nations.
Circle also noted that the use of stablecoins in speculative trading has declined by 90% over the past five years. Additionally, the report mentioned that 33% of consumers in Latin America have made payments with stablecoins, with citizens in the region receiving $562 billion in digital currency between 2021 and mid-2022.
Cryptocurrency Adoption Extends Beyond Developed Nations; USDC Usage Grows Globally
Meanwhile, mainstream businesses are deepening their involvement with technologies like USDC (USD Coin). Leading payment companies, merchant settlement firms, blockchain-based credit markets, fintechs, neobanks, remittance companies, NGOs, traditional banks, capital markets firms, and custodians are all embracing USDC for various purposes.
The report emphasizes that the dollar’s global role, comprising over 90% of trade invoicing in Latin America, 74% in the Asia-Pacific region, and 79% in the rest of the world outside of Europe, positions USDC as a key player in the stablecoin space.
Futhermore, in a post on X (formerly known as Twitter) in August 2023, Circle CEO Jeremy Allaire estimated that as much as 70% of USD Coin (USDC) adoption comes from countries outside of the United States, despite the perception that USDC is primarily focused on the U.S.
Despite the hype that we’re all about the US, we estimate that 70% of USDC adoption is non-US, and some of the fastest growing areas are emerging and developing markets. Strong progress happening across Asia, LATAM and Africa. Demand for safe, transparent digital dollars is…
— Jeremy Allaire (@jerallaire) August 7, 2023
He noted that the stablecoin’s adoption is significantly higher internationally and highlighted that some of the fastest-growing areas are in emerging and developing markets. Allaire specifically mentioned strong progress in Asia, Latin America (LATAM), and Africa.
Also recently, a report stated that Circle’s IPO filing was part of the company’s plans to become a publicly traded firm. However, the stablecoin issuer did not reveal the proposed price range for its IPO filing or the number of shares that it planned to sell.
The post Circle Reports Surge in Remittances Through USDC Stablecoin in Asia appeared first on Cryptonews.
