USDC Doption Is Lagging Outside Of The Coinbase US
United States-based cryptocurrency exchange Coinbase says the adoption of USDC has been “more conservative” outside of the U.S., which it believes is a result of international currency conversion fees.
In an Oct. 20 statement, the exchange said there is currently three times more USD Coin bought with U.S. dollars as compared 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 USD Coin, and this is a barrier to broader international adoption.”
The U.S. dollar-pegged cryptocurrency is currently the second-largest stablecoin by market capitalization under Tether.
Coinbase said it sees the utility of stablecoins such as USDC benefitting residents in countries requiring a coin that doesn’t fluctuate in value, is highly accessible and gives access to decentralized finance (DeFi).
The exchange said it is aiming 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.
In 2018, Coinbase along with payments technology company Circle partnered to create the Centre Consortium to developUSD Coin, which currently is the second-largest stablecoin behind Tether and the fourth-largest cryptocurrency in terms of market capitalization.
Compared to conventional remittance systems, stablecoins like USD Coin are considered as a quicker and less expensive alternative. According to a recent research by Chainalysis, Latin America’s growth of cryptocurrencies is mostly driven by the usage of stablecoins for remittances.
Coinbase’s move is the most recent in a series of initiatives to broaden USDC use. In September, Circle announced it would introduce the stablecoin on five other blockchains, including Polkadot, Optimism, Near, Arbitrum, and Cosmos.
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