Coinbase said USDC stablecoin adoption is slipping outside of the US. The exchange noted that the stablecoin is acquired at 3x the rate with US dollars when compared to other fiat currencies.
Coinbase claims that the adoption of USD Coin has been "more cautious" outside of the United States, owing to foreign currency conversion expenses.
In an October 20 statement, the exchange said there is currently three times more USDC purchased with US dollars compared to other currencies.
“Currently, USDC is purchased three times more than non-USD currencies. This is due in part to the fact that, outside of the US, users are frequently forced to pay fees when changing their native currency into USDC, which is a barrier to further worldwide adoption.”
The US dollar-pegged cryptocurrency is now the second-largest stablecoin by market capitalization, trailing only Tether.
Coinbase believes that stablecoins such as USDC will assist citizens in countries that require a coin that does not vary in value, is highly accessible, and provides access to DeFi.
The exchange stated that it intends to build more on-ramps for consumers to access USDC and that it will eliminate fees for any clients who buy or sell USDC using any fiat currency.
Coinbase and payments technology startup Circle formed the Centre Consortium in 2018 to develop USDC, which is now the second-largest stablecoin after Tether and the fourth-largest cryptocurrency in terms of market value.
Stablecoins, such as USDC, are viewed as a less expensive and speedier alternative to existing remittance systems for transferring currency between parties. A recent report shows the usage of stablecoins for remittances is a major driver pushing crypto adoption in Latin America.
Coinbase's move is the latest in a drive to promote USDC adoption. In September, Circle announced that the stablecoin will be accessible on five new blockchains, including Polkadot, Optimism, Near, Arbitrum, and Cosmos.