Circle Reports Surge in Usage of USDC for Remittances in Asia

The latest report from crypto issuer Circle reveals a significant increase in the use of its USDC stablecoin for remittances in Asia, showcasing its broader utility beyond speculative trading.

USDC, a cryptocurrency pegged to the U.S. dollar, backed by liquid assets, facilitated the transfer of $130 billion into Asia in 2022. The Asia-Pacific region now represents 29% of the global digital currency value received, surpassing North America (19%) and Western Europe (22%). The report emphasises the role of USDC in remittance transfers, particularly in emerging markets like the Philippines, where a partnership with Coins.ph aims to tap into a $36 billion annual business.

Circle also asserts that USDC is addressing the $510 billion trade finance gap in the region, offering liquidity for cross-border remittances and credit, crucial for businesses facing capital outflow restrictions in emerging markets. XREX, a Taipei-based company, is cited as an example, using USDC to establish financial pipelines between countries, leveraging the abundance of dollar liquidity in Taiwan to bridge shortfalls in other Southeast Asian nations.

Notably, the report highlights a 90% decline in stablecoins’ use for speculative trading over the past five years. In Latin America, 33% of consumers have reportedly made payments with stablecoins, resulting in $562 billion in digital currency transactions between 2021 and mid-2022. Overall, the findings underscore the evolving and practical roles stablecoins play in facilitating international transactions and addressing financial gaps in various regions worldwide.