Circle CEO claims "explosive" demand for Stablecoin from companies

Circle CEO claims companies' "explosive" demand for Stablecoin - Jeremy Allaire Circle 1024x576Four months after Circle moved to stablecoin, the startup's new business model received an unexpected boost from the global coronavirus crisis, said co-founder and CEO Jeremy Allaire.

Blockchain tokens supported by the US dollar are growing in popularity and quotation around the world, and this time much of the demand is for payments in normal commercial transactions, not just for quickly moving money between cryptocurrency exchanges, Allaire said.

"Over the past few weeks, we have seen explosive interest and growth in USDC," he said, referring to the collaboration between Circle's stablecoin project and Coinbase.

"We are receiving feedback from participants in the Asian market about the growing demand for USDC from SMEs seeking both the security and usefulness of digital dollars," said Allaire.

The company has seen the number of Circle corporate accounts - introduced last month for corporate clients to conduct business using USDC - grow 700% in recent weeks, with over two thirds of these businesses coming from outside the crypto space. .

Double digit growth

According to CoinMetrics, USDC's market capitalization jumped 65%, from $ 444 million on March 1 to $ 734 million as of press time. Allaire's explanation for this phenomenon suggests that the crisis is accelerating the adoption of technology blockchain, albeit relatively mildly.

As a stablecoin, the USDC is designed to hold its value against the dollar, not bitcoin. It is supported by real dollars held in a bank, for which it can be redeemed on demand.

"We believe we see a real turning point in the adoption of digital currency," said Allaire. "We are seeing record amounts of transaction volume," Allaire said, adding that adoption "is distributed relatively evenly in Western and Asian markets."

Dollar substitutes

But the USDC is not alone in achieving double-digit growth. According to CoinMetrics, the Paxos (PAX) standard has grown 22% from $ 198 million to $ 258 million in the past six weeks; the tether (USDT) grew 36% from $ 4,6 billion to $ 6,3 billion and the Gemini dollar (GUSD) grew from $ 3,9 million to $ 6,2 million, up to 6%.

The Dollar Binance (BUSD) issued with Paxos experienced the fastest growth, from $ 68 million to almost $ 200 million, with a whopping 194%. This obvious boom in dollar substitutes came when Libra abandoned her plan to create a global digital currency, focusing on stablecoins linked to individual national currencies.

The digital dollar concept is gaining momentum elsewhere. On Thursday, a group of U.S. lawmakers presented a bill proposing a digital dollar (albeit not a blockchain-based one) as a tool for distributing stimulus payments to US residents.

This is at least the fourth bill presented to Congress that suggests a digital dollar and has been co-sponsored by nearly a dozen representatives.