Global Adoption Of Stablecoins Leaves US In The Dust—Report
The post Global Adoption Of Stablecoins Leaves US In The Dust—Report appeared on BitcoinEthereumNews.com.
The US-based consumers’ adoption of stablecoins is facing a slowdown in 2024 even when there is increasing activity in Bitcoin that rose in popularity following the launch of the spot Bitcoin exchange-traded funds. The graph below shows a decline in transactions by US-regulated platforms in just under a year. This can be attributed to the growing problem of US-based stablecoins in terms of regulation and adoption within the country. This indicates that the stablecoins of emerging markets with bases outside the US are experiencing higher implementation. As stablecoins see increased use globally, this type of digital asset is being used to carry value and conduct cheap transactions in every nook and corner of the world. Share of stablecoin inflows to exchanges regulated in the United States and those not regulated in the US. Source: Chainalysis Global Demand For US Dollar-Backed Assets As countries aim for a more stable asset base, usually in the form of the dollar, stablecoins will help enhance global financial inclusion, especially in areas where there are few, if any, stable currencies. Such a need for reliable and well preserved assets will fuel the use of stablecoins. As of today, the market cap of cryptocurrencies stood at $2.26 trillion. Chart: TradingView.com As 2022 ended, It was observed about $1 trillion in US dollars had been found abroad, which approximately equals to about half of the entire US dollar supply which just further emphasizes how stablecoins are increasingly replacing dollar cash in markets where local currencies are prone to volatility. Image: Built In The results align with the words of Paolo Ardoino, the Tether CEO, who recently stated that stablecoin demand mainly comes from developing countries like Argentina, Turkey, and Vietnam. In such regions, people seek stablecoins for protection against inflation and currency erosion and, hence, are increasingly…
Filed under: News - @ October 18, 2024 3:27 am