Coinbase Says USDC Adoption Outside US, Is Slow

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Coinbase, a US-based cryptocurrency exchange stated that the adoption of USD Coin (USDC tickers down $1.00),has been “more cautious” outside of the US.

iexclusivenews reports that Coinbase believes it’s due to currency translation cost.

The exchange stated in a statement on October 20 that three times as many USDC are being purchased with US dollars as opposed to other currencies.

“Currently, 3x more USDC is bought with USD versus non-USD currencies. In part this is because, outside of the US, users usually have to pay fees in the process of converting their local currency into USDC, and this is a barrier to broader international adoption.”

The cryptocurrency that is pegged to the dollar is currently second in market capitalization behind Tether (USDT tickers are down $1.00).

According to Coinbase, citizens in nations needing a token that doesn’t vary in value, is widely accessible, and provides access to decentralized finance will benefit from stablecoins like USDC’s utility (DeFi).

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The exchange said that it will be waiving fees for any customers who purchase or sell USDC using any fiat currency in an effort to “create more on-ramps for people to access USDC.”

To produce USDC, the second-largest stablecoin after Tether and the fourth-largest cryptocurrency in terms of market value.

Coinbase and payments technology startup Circle teamed up in 2018 to form the Centre Consortium.

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Compared to conventional remittance systems, stablecoins like USDC are considered as a quicker and less expensive alternative.

According to a recent research by Chainalysis, Latin America’s growth of cryptocurrencies is mostly driven by the usage of stablecoins for remittances.

However, iexclusivenews Nigeria reports that Coinbase’s action is the most recent in a series of initiatives to broaden USDC adoption.

In September, Circle announced it would introduce the stablecoin on five more blockchains, including Polkadot, Optimism, Near, Arbitrum, and Cosmos.