{"id":25385,"date":"2023-08-13T04:46:46","date_gmt":"2023-08-13T04:46:46","guid":{"rendered":"https:\/\/icoinmarket.com\/global-stablecoin-adoption-boosts-dollar-supremacy\/"},"modified":"2023-08-13T04:46:46","modified_gmt":"2023-08-13T04:46:46","slug":"global-stablecoin-adoption-boosts-dollar-supremacy","status":"publish","type":"post","link":"https:\/\/icoinmarket.com\/global-stablecoin-adoption-boosts-dollar-supremacy\/","title":{"rendered":"Global Stablecoin Adoption Boosts Dollar Supremacy"},"content":{"rendered":"
\n<\/p>\n
Stablecoins are helping to maintain dollar supremacy as international users drive demand for dollar-denominated cryptocurrencies.<\/p>\n
The trend stands in contrast to narratives that depict crypto as a threat to the dominance of US dollars.<\/p>\n
In comments this week, Circle CEO Jeremy Allaire reported that 70% of demand for USDC comes from outside the US.\u00a0<\/p>\n
Noting that the fastest growth in adoption has been observed in emerging markets, he said that \u201cdemand for safe, transparent digital dollars is strong,\u201d across Asia, LATAM, and Africa.<\/p>\n
The largest stablecoin issuer, Tether, has also emphasized emerging markets as central to the continued adoption of USDT.<\/p>\n
According to the firm, people in countries with volatile domestic currency use stablecoins to hedge against inflation without needing a USD-based bank account or holding cash.<\/p>\n
In an interview with CNBC on Friday (Aug. 11), Brian Brooks, the former CEO of Binance US, discussed rising international demand for dollar-pegged stablecoins:<\/p>\n
\n\u201cCitizens in countries that have high inflation are really strongly demanding dollar-denominated products to keep their money safer after they\u2019ve earned the money [\u2026] In many countries where you can\u2019t get a dollar bank account, stablecoins are your best solution.\u201d<\/p>\n<\/blockquote>\n
Moreover, he implied that the US could leverage this demand to \u201cmake the dollar relevant again.\u201d At a time when governments around the world want to limit the dollar\u2019s role in the global financial system, Brooks argued that stablecoins could cement its position.\u00a0<\/p>\n
However, he warned that the opportunity could be lost if the country doesn\u2019t ratify an appropriate regulatory framework. Criticizing US policy on the issue, he said the government had suppressed stablecoin adoption by failing to regulate it properly.<\/p>\n
Stablecoin Issuers Now Critical to Global Economy<\/h2>\n
Advocates of stablecoin regulation like Brooks point to their growing role in the global economy, arguing that they should be subject to the same oversight as banks.<\/p>\n
Certainly, the $81.8 billion in assets under management that Tether reported in May puts it on par with a small American bank or even a large bank in an emerging economy. Yet few banks come close to Tether\u2019s near-monopoly of the stablecoin market.<\/p>\n