USDC Dominance: Circle's Report Spotlights Soaring Usage for Asian Remittances

Since its establishment in 2018, the USDC stablecoin has emerged as a linchpin in facilitating settlements, boasting a staggering $12 trillion in blockchain transactions, as announced by the issuing company. Circle, a prominent figure in the crypto space, has shed light on a noteworthy surge in remittance activities across Asia powered by its USDC stablecoin, underscoring its functionality beyond speculative trading.

USDC operates as a cryptocurrency tethered to the value of the U.S. dollar, its value backed by liquid cash and equivalent assets. According to the latest report, a substantial $130 billion worth of USDC flowed into Asia in 2022. Circle's findings reveal the Asia-Pacific region's dominance, constituting 29% of the total global digital currency value received, outpacing North America (19%) and Western Europe (22%).

These transaction volumes are inclusive of remittance transfers, marking a pivotal development for emerging markets with sizable diasporas, notably the Philippines. Circle places emphasis on its partnership with Coins.ph, a Philippines-based exchange, with aspirations to capture a significant share of this market valued at an estimated $36 billion annually.

Furthermore, Circle asserts that USDC plays a pivotal role in addressing the $510 billion trade finance gap in the region, particularly benefiting emerging markets grappling with capital outflow restrictions. This addresses the common challenge businesses face in securing funding for cross-border remittances and credit in regions with such constraints.

XREX, based in Taipei, stands out as a prime example of a company leveraging USDC to bridge this financial gap. A 2022 data profile delves into how XREX constructs financial channels between countries using stablecoins, capitalizing on Taiwan's abundant dollar liquidity and the deficit of dollars in other Southeast Asian nations.

The report also illuminates a significant shift in the use of stablecoins, signaling a remarkable 90% decline in their application for speculative trading over the past five years. Expanding the focus globally, the report underscores that 33% of consumers in Latin America have adopted stablecoins for payments. Citizens in the region have collectively received a substantial $562 billion in digital currency between 2021 and mid-2022, portraying the growing impact and acceptance of stablecoins in the region.

Read More: Binance Witnesses Temporary USDC Stablecoin Depreciation, Plummeting to $0.74