- The demand for US dollar-powered assets has been rising dramatically on the global level and it is directing the shift in global stablecoin use.
- One more factor because of which the United States is not performing well in stablecoin adoption is unpredictable administration of stablecoin as well as virtual assets.
- Chainalysis has also reported that over $1 trillion in US dollar banknotes were carried outside the boundaries of the United States towards the end of 2022.
After the spot BTC exchange-traded funds (ETFs) got introduced the U.S. has witnessed record Bitcoin activity since then. A report was published by Chainalysis, a blockchain analysis firm on October 17, which unveiled that the adoption of stablecoin in the United States has decelerated this year.
The stablecoin activity has witnessed many ups and downs in the market of the United States. Firstly, the share of stablecoin transactions on the exchanges operated from the United States went down about 50% last year and about 40% this year.
The crypto adoption in North America has witnessed a complete opposite trend. This year, the share of stablecoin transactions surpassed 60%.
Why is the demand in the US comparatively low?
The demand for US dollar-powered assets has been rising dramatically on the global level and it is directing the shift in global stablecoin use. The countries in which full access to stable currencies have been restricted is the one demanding for more stablecoin use.
Chainalysis has also reported that over $1 trillion in US dollar banknotes were carried outside the boundaries of the United States towards the end of 2022. The data was provided by the Federal Reserve of the United States.
The trend of using US dollar-powered stablecoins is increasing as the users find it as a store of value as well as cheaper transactions.
The chief executive officer of Tether, Paolo Ardonio gave statements that Argentina, Turkey and Vietnam are the countries which are in the top list for demanding stablecoins. However, the United States has fallen behind.
The threat to American Interests
One more factor because of which the United States is not performing well in stablecoin adoption is unpredictable administration of stablecoin as well as virtual assets. Chainalysis has also mentioned that Circle says that the absence of transparent crypto laws in the United States has given an opportunity to financial centers in Europe as well as UAE to draw more stablecoin projects.
A spokesperson from the financial technology company has reported that “a threat to the American interests has been noticed after a lack of good US regulatory framework for dollar-cited stablecoins.
Now, when different countries are making regulatory frameworks that promote stablecoin adoption, the lawmakers of the United States are feeling pressure to act.
