According to the exchange, a stablecoin can be purchased for three times more than other fiat currencies.
Coinbase, a cryptocurrency exchange based in the United States, claims that USD Coin adoption has been more conservative outside the United States. This is due to international currency conversion fees.
The exchange stated in an Oct. 20 statement that there are currently three times more USDC purchased with U.S. Dollars than other currencies.
“Currently, USDC can be bought for 3 times more than non-USD currencies. This is partly due to the fact that users outside the US have to pay fees to convert their local currency into USDC. This is a barrier for wider international adoption.
Tether, the U.S. dollar-pegged cryptocurrency, is currently ranked second in terms of market capitalization.
Coinbase stated that it believes the utility of stablecoins such USDC is beneficial to residents in countries that require a currency that doesn’t fluctuate, is easily accessible, and provides access to decentralized financing (DeFi).
According to the exchange, it plans to build more on-ramps to allow users to access USDC. It will waive fees for customers who purchase or sell USDC in any fiat currency.
Coinbase and payments technology company Circle formed the Centre Consortium to Develop USDC in 2018. It is currently the second-largest stablecoin after Tether, and fourth-largest cryptocurrency by market capitalization.
Stablecoins like USDC can be used to send value between parties at a lower cost and quicker rate than traditional remittance systems. Chainalysis recently reported that stablecoins are being used for remittances. This is a major factor in Latin America’s crypto adoption.
Coinbase’s latest move is part of an effort to increase USDC adoption. In September Circle announced that it would rollout the stablecoin on five additional blockchains, including Near, Optimism and Cosmos.