According to a recent report by cryptocurrency issuer Circle, which shows other use for cryptocurrencies besides speculative trading, the company witnessed a spike in remittances flowing via Asia via its USDC stablecoin.A cryptocurrency called USDC is backed by liquid cash and assets that are equivalent to cash, and it is correlated with the value of the US dollar.
According to the research, $130 billion worth of USDC entered Asia in 2022.As per Circle, the value of digital currency received globally is attributed to the Asia-Pacific region at 29%, while North America and Western Europe contribute for 19% and 22%, respectively.
Remittance transfers are another portion of these quantities, which is significant for developing nations like the Philippines that have sizable expatriate populations.According to the report, Circle has teamed up with Coins.ph, a Philippine-based exchange, in an attempt to win a portion of this about $36 billion market.In the research, Circle also says that USDC is helping bridge the region’s $510 billion trade finance gap, which is the absence of liquidity accessible to enterprises for cross-border transfers and credit.This helps especially in developing nations where there are limits on capital outflows, as companies frequently find it difficult to secure the finance they need for global trade.
Taipei-based XREX is one business that is utilizing USDC to close this gap.Its founder, Wayne Huang, described how XREX uses stablecoins to create financial conduits across nations, using Taiwan’s strong dollar liquidity and other countries in Southeast Asia’s currency shortage in a CoinDesk profile from 2022.The usage of stablecoins in speculative trading has decreased 90% over the previous five years, according to Circle.
According to the survey, 33% of Latin American consumers have made payments using stablecoins, and between 2021 and mid-2022, the region’s residents would have received $562 billion in digital money.