Circle Reports Soaring Use of USDC for Asia Remittances

• USDC Stablecoin Experiences Significant Rise in Asian Remittances, Circle Reports
• USDC Flow into Asia
• Circle's Partnership with Coins.ph
• USDC Bridging Liquidity Gaps
• A Decrease in Use for Speculative Trading
• Stablecoin Usage in Latin America

USDC Stablecoin Experiences Significant Rise in Asian Remittances, Circle Reports

Circle, the creator of the USDC stablecoin, has witnessed a marked increase in remittance activity in Asia using its digital currency, according to its latest report. The report sheds light on the non-speculative uses of cryptocurrencies like USDC, which is tethered to the value of the U.S. dollar and supported by liquid cash and cash-equivalents.

USDC Flow into Asia

The report notes that in 2022 alone, $130 billion of USDC flowed into Asia. It highlights that the Asia-Pacific region receives 29% of the total global digital currency value, in comparison to 19% for North America and 22% for Western Europe. Part of these volumes are formed by remittance transfers, which are crucial for emerging markets with large diasporas like the Philippines.

Circle's Partnership with Coins.ph

In its effort to harness this remittance market estimated to be worth around $36 billion annually, Circle has partnered with Coins.ph, a Philippines-based exchange. The company also asserts that the use of USDC is assisting in filling the region's trade finance gap of $510 billion, signifying the deficit of liquidity accessible to companies for international remittances and credit.

USDC Bridging Liquidity Gaps

This solution is particularly beneficial for emerging markets with capital outflow restrictions, where businesses frequently find it difficult to secure necessary funding for international trade. XREX, a company based in Taipei, is employing USDC to address this issue. Its founder, Wayne Huang, shared in a 2022 profile how XREX creates financial conduits between nations using stablecoins, capitalizing on the abundant dollar liquidity in Taiwan and the dollar deficit in other Southeast Asian countries.

A Decrease in Use for Speculative Trading

Circle's report also indicates that speculation-driven use of stablecoins has dropped by 90% over the last five years.

Stablecoin Usage in Latin America

Focusing on Latin America, the report reveals that 33% of consumers in the region have made transactions using a stablecoin. Furthermore, it points out that citizens in Latin America received $562 billion in digital currency between 2021 and mid-2022.

Edited by Jonathan Stoker