Key Points:
- According to the USDC Economy 2024 Report, Circle sees a spike in remittances via its USDC stablecoin, channeling $130 billion into Asia in 2022.
- Circle partners with Coins.ph in the Philippines to tap into the $36 billion annual remittance market.
- Positioned to address the $510 billion trade finance gap in Asia, USDC’s growth continues.
In the USDC Economy 2024 Report, leading crypto issuer Circle revealed a significant surge in remittances flowing through Asia via its USDC stablecoin.
The USDC Economy 2024 Report showcases the expanding utility of cryptocurrency beyond speculative trading.
According to Circle, a staggering $130 billion worth of USDC made its way into Asia in 2022, making the Asia-Pacific region the recipient of 29% of the global digital currency value, surpassing North America’s 19% and Western Europe’s 22%.
Crucially, these substantial volumes include remittance transfers, particularly vital for emerging markets like the Philippines, which has a significant diaspora. Circle emphasized its collaboration with Coins.ph, an exchange based in the Philippines, aiming to tap into this market valued at around $36 billion annually.
The necessity for trade financing, such as letters of credit, trade loans, guarantees, and insurance, is crucial for many small and medium-sized enterprises (SMEs) in the region. The Asian Development Bank estimates a trade finance gap of approximately $510 billion in Asia.
USDC, a stablecoin pegged to the U.S. dollar, emerges as a solution, facilitating easier access to dollars over the internet and potentially bridging this financial gap.
USDC has experienced exponential growth since its 2018 introduction, settling about $12 trillion in blockchain transactions. The cryptocurrency’s widespread adoption is prompting developers to create new applications, reinforcing the ecosystem around USDC, and simplifying its acquisition, transfer, and storage.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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