Stablecoins are helping to maintain dollar supremacy as international users drive demand for dollar-denominated cryptocurrencies.
The trend stands in contrast to narratives that depict crypto as a threat to the dominance of US dollars.
Non-US Markets Drive Demand For Dollar-Pegged Stablecoins
In comments this week, Circle CEO Jeremy Allaire reported that 70% of demand for USDC comes from outside the US.
Noting that the fastest growth in adoption has been observed in emerging markets, he said that “demand for safe, transparent digital dollars is strong,” across Asia, LATAM, and Africa.
The largest stablecoin issuer, Tether, has also emphasized emerging markets as central to the continued adoption of USDT.
According to the firm, people in countries with volatile domestic currency use stablecoins to hedge against inflation without needing a USD-based bank account or holding cash.
