The cryptocurrency exchange US-based Coinbase says adoption of USD Coin (USDC) has been “more conservative” outside the US, which it believes is a result of international currency conversion rates..
In a statement on October 20, the exchange said that there are currently three times more USDC bought with US dollars compared to other currencies.
“Currently, 3 times more USDC is purchased with US dollars compared to other currencies. In part, this is because outside the US, users often have to pay fees in the process of converting from their local currency at USDC, and this is a barrier to further international adoption.”
The US dollar-pegged cryptocurrency is currently the second largest stablecoin by market cap, behind Tether (USDT).
Coinbase said that One utility of stablecoins like USDC was to benefit residents in countries that require a currency that does not fluctuate in value, is highly accessible, and gives access to decentralized finance (DeFi)..
The exchange said it aims to “build more on-ramps for users to access USDC”and will waive fees for all clients who buy or sell USDC using any fiat currency.
In 2018, Coinbase along with payment technology company Circle partnered to create the Center Consortium to develop USDC, which is currently the second largest stablecoin.behind Tether, and the fourth largest cryptocurrency in terms of market capitalization.
Stablecoins like USDC are considered a cheaper and faster alternative compared to traditional money transfer systems Between the parts. A recent Chainalysis report shows the use of stablecoins for remittances as a key factor driving cryptocurrency adoption in Latin America.
Coinbase move is latest in efforts to increase USDC adoption. In September, Circle announced that it would roll out the stablecoin across five additional blockchains, including Polkadot, Optimism, Near, Arbitrum, and Cosmos.
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