Circle CEO Jeremy Allaire recently revealed around 70% of USD Coin (USDC) adoption originates from countries outside the United States. He highlighted strong growth in emerging markets in Asia, Latin American and Africa, according to a Cryptonews report.
"We estimate that 70% of USDC adoption is non-US, and some of the fastest growing areas are emerging and developing markets," Allaire said in the report. "Strong progress is happening across Asia, Latin America and Africa. Demand for safe, transparent digital dollars is strong."
Contrary to its U.S.-centric perception, USDC's adoption is predominantly international, with Allaire noting that approximately 70% of its usage comes from non-US regions, Cryptonews reported. This trend aligns with a reduction in USDC supply due to increased redemptions, leading to a contraction in its market share as a stablecoin to 21%, totaling $26.1 billion in circulation.
Circle's USDC holds the second-largest stablecoin position worldwide in terms of market capitalization, following Tether (USDT), which holds a market cap three times its size. The rivalry between USDC and USDT has been ongoing for years, and it intensified with PayPal's recent introduction of its own stablecoin, PYUSD, Cryptonews said.
Allaire's remarks align with a decrease in the availability of USDC since the beginning of 2023, linked to diminishing interest and a rise in redemptions. He noted USD Coin (USDC) has encountered a notably higher count of redemptions compared to new issuances over the past month, Cryptonews reported.
During this timeframe, Circle introduced USDC valued at $5 billion. Yet, the amount redeemed surpassed new issuances by $1.6 billion, culminating in a cumulative redemption of $6.6 billion. As a result, the share of the stablecoin market held by USDC has shrunk to 21%, with a total circulation amounting to $26.1 billion, according to Cryptonews.
Coingecko's data reveals a market capitalization decline of more than 50% for USDC in the past year, plunging from $54 billion Aug. 8th, 2022, to more than $26 billion Aug. 8 of this year, Cryptonews said. Despite acknowledging the limited presence of USDC within the U.S., Allaire has been actively engaged in advocating for U.S. policymakers. During July, Allaire featured in a concise video released by Circle, directed at Congress, with the aim of safeguarding stablecoins and cultivating confidence in digital currencies.
This initiative followed the re-introduction of bipartisan legislation focused on digital assets in Congress July 12, an initiative originally put forth in June 2022, according to Cryptonews.
Within the video presentation, Allaire highlighted the shifting dynamics where the supremacy of the U.S. dollar faces formidable challenges, particularly in light of the escalating competition arising from foreign digital currencies. He illuminated the potential transformative shift towards worldwide digital commerce encompassing currencies like digital dollars, euros or yuan. Allaire had previously advanced the notion that stablecoins could serve as a catalyst for China to encourage the adoption of the yuan, Cryptonews reported.
Underscoring the urgency of a pivotal choice, Allaire said the U.S. stands at a crossroads, needing to decide whether to uphold the dollar's dominance in the realm of online currency or relinquish the reins to other nations. Furthermore, he delved into an elucidation of Circle's strategic global expansion strategy, including its collaboration with esteemed financial institutions across key global sectors, Cryptonews said.
In alignment with a parallel global approach, Paolo Ardoino, Tether's chief technology officer, a formidable contender in the stablecoin landscape, accentuated the company's endeavors that extend beyond the confines of the U.S., according to Cryptonews.
