In a tweet dated August 8, Jeremy Allaire, CEO of Circle, noted that approximately 70% of the adoption of USD Coin (USDC) originates from countries beyond the borders of the United States.
He highlighted that contrary to common assumptions, the widespread use of USDC is primarily concentrated in international regions: “Our assessment indicates that the majority of USDC adoption occurs outside the US, with noteworthy growth observed in emerging and developing markets.” Allaire also mentioned the significant advancements in Asia, Latin America, and Africa, underscoring the robust desire for secure and transparent digital US dollars.
Allaire’s remarks line up with a drop in USDC supply since the beginning of 2023, which is due to falling demand and rising redemptions. He acknowledged that their USD Coin (USDC) has seen a sizable amount of redemptions against issuances over the past month in a tweet on August 7.
During this time, Circle issued USDC worth $5 billion. However, redemptions were $6.6 billion, which was $1.6 billion more than issuances.
Due to this, USDC’s stablecoin market share has decreased to 21%, with a $26.1 billion total circulation.
Approximately $26 billion was the market value of USDC on August 8th, 2023, down more than 50% from $54 billion on that date in 2022, according to statistics from Coingecko.
The USDC and USDT Stablecoin Issuers’ Global Expansion Strategies: Looking Beyond the United States
Jeremy Allaire has actively lobbied US lawmakers despite conceding that USDC’s presence in the country is not very significant.
Jeremy Allaire was featured in a two-minute video that Circle issued in July to Congress in an effort to protect stablecoins and promote trust in digital currency. This came after bipartisan legislation pertaining to digital assets was reintroduced in Congress on July 12th after being first submitted in June 2022.
Allaire emphasised in the film that the US dollar’s hegemony is under threat, particularly in the face of escalating rivalry from foreign digital currencies.
He mentioned the potential shift towards digital dollars, euros, or yuan as the predominant form of global trade. In the past, Allaire has proposed that China employ stablecoins to encourage the acceptance of the yuan.
Allaire emphasised the importance of making a choice, claiming that the US must decide whether to keep the dollar’s dominance in online money or let other countries overtake it.
He continued by saying that Circle is cooperating with top-tier institutions in significant global regions in order to grow its global banking and liquidity network.
Paolo Ardoino, the Chief Technology Officer of Tether, a rival in the stablecoin market, emphasised his company’s concentration outside of the United States in keeping with a similar international strategy.
In February, Ardoino made the observation that USDT, Tether’s stablecoin, might be seen as a safe tool helpful for developing countries and emerging economies.