• Circle CEO Jeremy Allaire says that non-US markets are driving the majority of USDC adoption (70%).
• PayPal and Paxos Trust Company recently launched PayPalUSD (PYUSD) as a stablecoin.
• Rep. Patrick McHenry introduced the Clarity for Payment Stablecoins Act of 2023 to provide a regulatory framework for stablecoins.
Circle’s USDC Adoption Driven by Non-US Markets
Circle CEO Jeremy Allaire has revealed that the majority of adoption for their dollar-pegged stablecoin USDC (USD Coin) is coming from outside the US, with 70% of its usage stemming from non-US markets. The strong demand is indicative of a need for safe and transparent digital dollars in emerging and developing nations, particularly in Asia, Latin America, and Africa. With a market cap of roughly $26.2 billion, USDC is currently the sixth-largest digital asset overall and second largest stablecoin behind Tether (USDT).
PayPal Launches PayPalUSD Stablecoin
Allaire also congratulated PayPal and Paxos Trust Company on launching their own USD-pegged stablecoin called PayPalUSD (PYUSD). This marks an increased interest in dollar-backed cryptocurrencies from traditional financial institutions such as PayPal, which aims to provide users with secure access to digital money worldwide.
Clarity for Payment Stablecoins Act of 2023
The House Financial Services Committee recently approved legislation introduced by Rep. Patrick McHenry (R-NC) entitled “Clarity for Payment Stablecoins Act of 2023” which seeks to provide a regulatory framework for stablecoin issuance by recognizing state regulations such as New York’s regime on digital assets firms. The bill is awaiting consideration by the full House.
International Demand For Digital Dollars
The desire from international markets indicates an increasing demand for safe and transparent digital dollars around the world – something that both Circle’s USDC and Paypal’s PYUSD are aiming to address with their respective offerings. It remains to be seen how successful these two projects will be in capturing this global demand but it certainly appears that there is a sizeable opportunity at hand if they can effectively capitalize on it.
With more businesses entering into the space, there appears to be plenty of potential growth opportunities when it comes to providing users with access to secure digital dollars globally – something that Circle CEO Jeremy Allaire has recognized through his comments about non-US markets driving adoption of USDC as well as his support for Rep McHenry’s legislation seeking clarity on payment stablecoins within the United States