Stablecoins Outshine Visa, Mastercard, Transforming Financial Landscapes
The stablecoin market is surging globally, reaching over $7 trillion in settlements, a remarkable achievement comparable to Visa and Mastercard's combined $14 trillion.
This growth reflects a swift shift towards blockchain-based financial services, particularly notable in Latin America, where millions of businesses and billions of individuals are embracing regulated blockchain solutions for savings, credit, and payments.
Latin America stands at the forefront of this financial evolution, experiencing a $562 billion influx in digital currency value between mid-2021 and mid-2022. This surge caters to the 1.7 billion underbanked smartphone users worldwide, disrupting traditional financial systems.
With a population of nearly 658 million and a robust developer base, Latin America mirrors North America’s influence during the internet’s early days, showcasing its significance in this changing landscape. This fintech surge also reduces income disparity, with three-quarters of 30 million digital banking users previously excluded from traditional banking.
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This region’s embrace of stablecoins is reshaping consumer spending power, echoing the rise of CBDC. Circle, known for its USDC stablecoin, aims to build seamless financial connectivity globally through compliant stablecoins and blockchain solutions.
USDC, launched in 2018, handles $4 billion in daily transactions, fully backed by liquid assets and redeemable 1:1 for US dollars. Circle’s strategic investment in the SEC-regulated Circle Reserve Fund managed by BlackRock reinforces this stability. Looking ahead, Circle foresees a future with more non-dollar stablecoins, exemplified by the introduction of EURC, a euro-backed stablecoin following the same model as USDC.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
