USDC Adoption Is More Conservative Outside Of The U.S.

The adoption of USD Coin (USDC) outside of the United States happens to be three times smaller than in the U.S due to international currency conversion fees, according to a statement by Coinbase.

“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 exchange wrote.

The second-largest stablecoin to date managed to surpass other crypto projects to take the fourth place in the overall crypto rankings.

Meanwhile, Coinbase explained that USDC shows the utility of stablecoins to be a benefit to residents in countries with inflation concerns and volatility since stablecoins do not fluctuate in value, are highly accessible, and give users access to decentralized finance (DeFi).

Coinbase also noted that it is working to “build more on-ramps for users to access USDC,” and will be waiving fees for all customers who buy or sell USDC using any fiat currency.

Coinbase Pushes Hard USDC

The affinity for USDC isn’t something strange for Coinbase, as in 2018 the exchange partnered with Circle to create the Centre Consortium in order to develop USDC. The main focus is that stablecoins such as USDC are perceived as a cheaper and faster alternative to traditional remittance systems for sending value between parties. Indeed, a recent report from Chainalysis reveals that stablecoins and their use in remittance are key factors in the adoption of such products in Latin America.

However, Coinbase and Circle are not stopping with their efforts to popularize the use of USDC, as in September, Circle announced it would roll out the stablecoin across five additional blockchains including Polkadot, Optimism, Near, Arbitrum, and Cosmos.

“Extending multi-chain support for USDC opens the door for institutions, exchanges, developers, and more to innovate and have easier access to a trusted and stable digital dollar,” Circle’s vice president of Product Joao Reginatto noted, adding that the exchange knew already at the time that there were a lot of interesting things happening in other ecosystems.