Coinbase wants to accelerate the adoption of USDC internationally, by establishing global parity for all users.
In a bid to promote the global adoption of USDC – a stablecoin issued by Circle and pegged against the US dollar, American crypto exchange Coinbase has decided to waive commission fees that would normally be incurred when buying or selling USDC using any fiat currency.
The exchange made the announcement via a Thursday blog post, saying that the decision will take effect immediately.
Reason for Coinbase USDC Policy Change
According to the official announcement, the fees that users pay for converting their local currencies into USDC have long hindered adoption. Hence, the reason behind the move. The statement read in part:
“The way to correct this, and accelerate the adoption of USDC internationally, is by establishing global parity for all users.”
The USDC stablecoin is the second largest stablecoin in the world, coming in right behind Tether in terms of market capitalization. It is also the 4th largest crypto in general. And now, there is potential for even more.
A Perfect Timing
Coinbase’s decision to boost the adoption of USDC could not have come at a better time. Firstly, inflation is at its highest levels across the world. And economies (whether rich or poor), are not having it any easier than the other. So, recently, a lot of individuals and businesses are having to convert their fiat currencies into more stable alternatives like the USDC. And according to Coinbase, USDC is “stable by design,” hardly fluctuates in price, and is backed by well-known reserves.
Apart from inflation necessitating the push for wider adoption of USDC, there is also the market share report. Recently, USDC’s market share has been dwindling in what appears to be a result of competition from Binance. Recall that the Binance exchange has been pushing aggressively to have its own BUSD stablecoin adopted instead of USDC.
So, it is only understandable that Coinbase is bringing on the fee waiver at this impeccable time. Especially because Coinbase is also a co-founder of the Centre Consortium that developed USDC in 2018.
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