Stablecoins are driving U.S. dollar dominance in regions with limited access to traditional dollar banking. A report by Castle Island Ventures and Brevan Howard Digital, sponsored by Visa, shows that stablecoin usage is increasing globally, providing an alternative for people in countries where the U.S. dollar is otherwise hard to obtain.
Stablecoin Adoption Reaches New Heights
In August 2024 alone, stablecoin volumes reached $461 billion, marking the third-highest month on record. Stablecoins like Tether (USDT) and USDC are offering people access to dollar-backed financial instruments without exposure to the volatility of traditional cryptocurrencies like Bitcoin.
Global Survey Highlights Widespread Use
The report includes data from a survey of 2,541 people across countries such as Nigeria, India, Indonesia, Turkey, and Brazil. In these regions, where traditional banking services struggle to provide reliable access to U.S. dollars, stablecoins have become a preferred financial tool. Nearly 69% of surveyed crypto users have exchanged their local currency for stablecoins, using them for payments and remittances.
Stablecoins Preferred Over Traditional Banking
Stablecoins are not just popular for payments but also provide users with higher yields, efficiency, and less interference from governments. In countries like Nigeria, where the government has been resistant to crypto, 75% of respondents expressed a very favorable view of stablecoins, highlighting a shift in how people access dollar-denominated assets.
Source:
Decrypt
