Stablecoin Educational Initiatives Focus On Emerging Markets
Rachel Wolfson has been covering the cryptocurrency, blockchain and Web3 sector since 2017. She has written for Forbes and Cointelegraph and is the host and founder of Web3 Deep Dive podcast.
Stablecoin adoption is on the rise, and interestingly enough, these digital assets are boosting US dollar dominance around the world.
Data from DeFiLIama revealed last week that stablecoins’ total market capitalization was worth $170 billion. This marks a 42.86% increase from the $119.1 billion market capitalization stablecoins saw in November last year.
Additionally, a new report sponsored by global payment giant Visa found that stablecoin adoption is rising as a monetary instrument rather than a digital asset used for trading and speculation.
The report—authored by Castle Island Ventures and Brevan Howard Digital—specifically states “that stablecoins have indeed found growing nontrading usage, particularly in emerging markets.”
Each of these companies is utilizing stablecoins as a new settlement rail to facilitate stablecoin adoption in emerging markets. The use cases are varied, but growing: remittance, digital dollar superapps, interest provision, payroll, b2b payments, cross border.
This appears to be the case in regions with unstable local currencies or where access to traditional US dollars is limited.
Findings from a report published by The Centre For Economics and Business Research show that stablecoins have helped mitigate currency volatility losses in a number of emerging markets.
The report also notes that stablecoins are unlocking capital by enabling faster and more efficient settlements. These efficiency gains are projected to generate an additional $2.9 billion in economic returns for emerging markets by 2027.
Chris Maurice,
Read more on cryptonews.com
