On August 8th, Jeremy Allaire, the CEO of Circle and USDC Coin, tweeted that despite the perception that USDC is centered in the US, a large part of its adoption comes from other international regions. He estimated that 70% of USDC adoption is non-US, with some of the fastest growing areas being in emerging and developing markets, specifically across Asia, Latin America, and Africa. Allaire noted that the demand for safe, transparent digital dollars is strong.
Circle’s USDC is the second-largest stablecoin globally in terms of market capitalization, trailing behind Tether (USDT) which is over three times larger. The rivalry between USDC and USDT for the top spot has persisted for years, and this competition intensified with PayPal’s recent launch of its stablecoin, PYUSD.
Allaire’s statements coincide with a reduction in USDC supply since the start of 2023. A tweet on August 7th confirmed that USDC had seen a higher number of redemptions compared to issuances and that redeemables exceeded the amount issued by $1.6 billion, for a total redemption of $6.6 billion. Consequently, USDC’s market share as a stablecoin has contracted to 21%, with a total circulation of $26.1 billion. Data from Coingecko shows that USDC’s capitalization fell by over 50% during the last year, going from $54 billion to just $23 billion.
Recognizing that USDC’s presence in the United States is a relatively small area, Jeremy Allaire has actively lobbied US legislators. In July, a video of two minutes was released by Circle. Allaire’s aim was to demonstrate to Congress that stablecoins are a good way to encourage trust in digital dollars and safeguard them. He originally proposed the reintroduction of bipartisan legislation relating to digital assets, which was proposed in June 2022.
In the video, Allaire noted that the dominance of US dollars is under challenge, primarily due to the growing competition of foreign digital currencies. He has previously suggested that China’s stablecoins could be used to promote the adoption and use of the Yuan. Allaire underscored the need for a decision, asserting that the US must choose whether to maintain the dollar’s prominence in online currency or allow other nations to take the lead.
In line with an international approach similar to that of the United States, Paolo Ardoino, the Chief Technology Officer of Tether, a competitor in the stablecoin space, emphasized his company’s focus beyond the United States. In February, Ardoino noted that USDT, Tether’s stablecoin, can be regarded as a secure tool beneficial for emerging markets and developing nations.
Circle is expanding its global banking network and liquidity by collaborating with high-quality financial institutions worldwide. Allaire has also actively lobbied US legislators, and in July, proposed the reintroduction of bipartisan legislation relating to digital assets. This is a decision which the United States must make, in order to decide whether to maintain the dollar’s prominence in online currency or allow other nations to take the lead.
