The Economic Landscape of USDC
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In the past ten years, the ascent of blockchain technology has ushered in a convergence between the internet and global finance, resulting in a revolutionary software upgrade for the financial system. This convergence serves as the catalyst behind Circle’s establishment in 2013. The company’s primary objective has been to integrate the fundamental principles of open internet software into the realm of finance. The mission revolves around leveraging the internet’s openness and scalability to enhance global economic prosperity through seamless value exchange, essentially constructing what we perceive as a burgeoning internet financial system.
Universal Access to Dollars
Blockchain networks are revolutionizing currency, transforming how individuals and businesses exchange value globally. Circle introduced USDC in 2018, a stablecoin uniting the reliability of the US dollar with the innovation of the open internet. With the dollar playing a central role in global finance, USDC facilitates accessible, secure, and efficient digital dollar transactions across borders. Available in over 190 countries, USDC has already gained traction in nearly 3 million on-chain wallets, marking a significant step towards redefining the landscape of international finance.
Internet-Money Open Platform
Since its launch in 2018, USDC has witnessed exponential expansion within the stablecoin network, settling approximately $12 trillion in blockchain transactions. This widespread adoption is unlocking digital dollars for individuals across the globe, prompting increased app development and reinforcing the ecosystem surrounding USDC. Drawing parallels to the evolution of cloud computing, we are entering a transformative phase akin to the cloud’s integration into businesses. Circle’s contribution to building the internet financial system complements the existing cloud infrastructure, as blockchain networks bring secure data, transactions, and computational power to the public internet.
Digital Dollar API: Transforming Internet Finance
USDC, a meticulously regulated and open-source building block on the public internet, seamlessly integrates into various fintech, banking, and digital currency projects. Enabling swift, cost-effective transactions in the world’s most widely used currency, USDC capitalizes on the expanding role of APIs in the rapidly evolving finance tech stack, unlocking significant opportunities in the current financial landscape.
Seamless Blockchain Integration
USDC, designed for seamless blockchain interoperability, is currently accessible on 15 blockchain networks. Our vision is to extend its availability wherever active developers collaborate with robust security measures. Introducing the Cross-Chain Transfer Protocol (CCTP) streamlines complexities, enhances safety and security, and reduces costs for USDC transfers between blockchains. Our goal is to universally integrate CCTP support across all native blockchain platforms for USDC, ensuring effortless dollar transactions across the internet and mitigating the current challenges associated with blockchain-to-blockchain transfers.
Global Accessibility of Open Currency
In the last decade, the Asia-Pacific region has emerged as a global technology leader, nurturing and catapulting a new wave of innovative businesses that redefine convenience and connectivity for billions. Pioneering companies have transformed both commerce and society, capitalizing on the region’s youthfulness, mobile-centric approach, and widespread digital wallet adoption. With nearly half of the 1.8 billion online users in Asia Pacific already utilizing digital wallets, the momentum is set to surge further, with an anticipated 58% digital wallet penetration among Southeast Asia’s unbanked by 2025.
Asia Pacific’s Financial Revolution: A Symbiotic Dance of Innovation and Regulation
In tandem with dynamic private sector innovations, Asia Pacific policymakers have steered towards a well-regulated digital economy, aligning with a regional vision for financial services super apps. Forward-thinking governments have fostered a robust digital financial infrastructure, enabling faster, more cost-effective, and transparent value movement for businesses and individuals alike.
Key economies, including India, Singapore, Hong Kong, Malaysia, and Thailand, have pioneered 24/7 real-time payment systems, achieving remarkable scale and volume. Building on this success, regulators in the region are swiftly shaping frameworks for payment stablecoins.
Singapore: The Monetary Authority of Singapore (MAS) regulates stablecoins under the Major Payment Institution licensing regime. Circle Singapore, holding a Major Payment Institution License, facilitates digital payment token services and cross-border and domestic money transfers. Singapore’s proposed framework for a “MAS-regulated stablecoin” aims to fortify its status as a digital asset hub.
Japan: Implementation rules for stablecoins took effect in June 2023, paving the way for the distribution of foreign-issued stablecoins like USDC. Circle’s collaboration with SBI Holdings aims to promote USDC’s circulation and use in Japan.
Hong Kong: The city concluded its initial stablecoin consultation in January 2023 and anticipates implementing regulatory arrangements in 2024, marking a pivotal step in the region’s financial evolution.
Expanding Economic Potential through Stablecoins
Asia is on the verge of widespread stablecoin adoption, particularly for impactful cross-border applications that can significantly benefit regional economies.
Cross-Border Payments: With Asia hosting a substantial portion of the world’s supply chain and ICT services, the $22.5 trillion commercial trade in the region (nearly 65% of the $35 trillion GDP) stands to gain remarkable efficiency through stablecoins, offering a streamlined solution for businesses conducting cross-border transactions.
Trade Finance: Small and medium-sized enterprises (SMEs) in Asia, crucial for trade, often face challenges in securing trade financing. The estimated $510 billion trade finance gap in the region can be alleviated by stablecoins like USDC, which provide easier access to dollars over the internet.
Remittances: With $130 billion in remittances flowing into Asia Pacific in 2022, stablecoins like USDC can revolutionize the landscape. Offering near-real-time global settlement at minimal cost, USDC eliminates additional friction for recipients without access to a bank, addressing the average 5.7% cost to send $200 into the region. The blockchain-based nature of USDC ensures accessibility without the need for a traditional bank account.
The Adoption of Stablecoins and Web3 in Latin America
While North America spearheaded the adoption of the original internet, Latin America is now at the forefront of digital currency and broader financial technology advancements. Fueled in part by necessity, Latin America’s historical role as a significant remittance corridor, marked by slow and expensive money transfers coupled with a high demand for US dollars, has positioned the region as a key player. The reliance on the US dollar carries profound implications in a region grappling with macroeconomic uncertainty, making blockchain networks an ideal solution for delivering digital dollars as a practical medium of exchange for economic activities.
A notable portion of the population in Latin America lacks access to traditional financial services, underscoring the transformative potential of device-centric banking and payments. Demographics further amplify the opportunities, with a population of 658 million—roughly double that of the US—and a significant advantage over regions with aging populations, as nearly a quarter of the population is aged 14 or younger.
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