The American cryptocurrency exchange Coinbase has recently made some assertions. It asserts that outside of the United States, the acceptance of USD Coin (USDC $1.00) has been “more cautious.”
The company believes this is a result of the significant expenses of changing currencies abroad.
The exchange released a statement on October 20. According to the Exchange, US dollars are now being used to buy three times more USDC than any other currency.
Users often have to pay fees outside of the US to convert their home currency into USDC. It is also a barrier to further worldwide adoption, the article adds.
The second-largest stablecoin is currently the USDC (whose value is linked to the Dollar in the United States). This is expressed in terms of Tether’s ($1.00 USDT) market capitalization.
According to Coinbase, stablecoins like USDC would benefit the country’s residents. This is a reference to citizens who need a currency with stable value. It has to do with readily available currency with access to decentralized financing (DeFi).
One of the purposes of the exchange, according to Coinbase, is to “provide new on-ramps for consumers to utilize USDC.” As a result, clients who buy or sell USDC using fiat currency won’t be charged any fees by the exchange as part of this endeavor.
Coinbase And Circle
A relationship between Coinbase and Circle, a business that focuses on payments technology, was established in 2018. The partnership’s goal was to launch the Center Consortium and advance USDC.
After Tether, USDC is presently the second-largest stablecoin. Additionally, according to market capitalization, it is the fourth-largest cryptocurrency.
Stablecoins like USDC are seen as a quicker and more affordable replacement for current remittance processes. This is the outcome when traditional value transfer techniques are contrasted.
The usage of stablecoins for remittances has been identified in a recent investigation by Chainalysis. This is one of the main driving forces for the emergence of cryptocurrencies in Latin American nations.
Circle said in September that it would distribute the stablecoin among five blockchains. These blockchains include Cosmos, Near, Arbitrum, Optimism, and Polkadot. The move by Coinbase is the most recent of many, which is made to encourage the use of USDC.