Circle CEO reveals massive USDC adoption outside US

Circle’s CEO, Jeremy Allaire, unveiled that approximately 70% of USDC adoption occurs outside the United States. 

Despite the perception that USDC primarily caters to the US market, emerging economies and developing regions emerge as strongholds for this stablecoin.

Allaire stated that an estimated 70% of USDC adoption is non-US, and some of the fastest-growing areas are emerging and developing markets.

Despite the hype that we're all about the US, we estimate that 70% of USDC adoption is non-US, and some of the fastest growing areas are emerging and developing markets. Strong progress happening across Asia, LATAM and Africa. Demand for safe, transparent digital dollars is…

— Jeremy Allaire (@jerallaire) August 7, 2023

He underscored the vigorous progress made across Asia, Latin America, and Africa.

This statement aligns with Paolo Ardoino, the CTO of Tether. Ardoino had earlier emphasized that Tether’s USDT can be a safe instrument for emerging markets and developing countries. 

5/ This focused approach allows Tether to be considered a safe tool for emerging markets and developing countries, a life-life for many communities that are suffering from heavy devaluation of their national currencies.

— Paolo Ardoino 🍐 (@paoloardoino) February 9, 2023

Allaire praises Paypal’s stablecoin plans

Allaire’s remarks coincided with the news of PayPal’s venture into the stablecoin landscape, introducing its USD-pegged stablecoin, PayPal USD (PYUSD). 

Allaire praised this move, highlighting the significance of major internet and payments corporations entering the stablecoin arena. The moguls joining the stablecoin field means that regulatory clarity will soon follow, Circle CEO thinks.

I'd also like to congratulate @PayPal and @Paxos for the launch of $PYUSD. It's incredibly exciting to see such a significant internet and payments company entering the stablecoin space.

This is what happens when we start to get regulatory clarity, and with the Payment…

— Jeremy Allaire (@jerallaire) August 7, 2023

Circle’s liquidity concerns

Addressing the ongoing dynamics of USDC’s market share, Circle has been working to maintain its position in the stablecoin market. Currently, the supply of USDC has experienced a decline due to a dip in demand and increased redemptions, causing liquidity concerns. 

In response to that, Allaire affirmed that the redemptions had exceeded issuance. According to him, the company issued $5 billion USDC over the last month and had redeemed $6.6B USDC.

I'm also pleased to share that our global banking and liquidity network is expanding. We're working with exceptional and high-quality banks in major regions around the world, to bring local settlement rails and globally distributed mint/burn to USDC.

Doing things by the book,…

— Jeremy Allaire (@jerallaire) August 7, 2023

Allaire also noted that the company’s network of banking partnerships is growing, ensuring a wide-ranging global presence for USDC. 

Moreover, the Monetary Authority of Singapore granted Circle a Major Payment Institution (MPI) license in June, adding to the company’s international outreach.