Non-USD Stablecoins Could Drive Adoption

Non-USD stablecoins have great potential to drive crypto adoption, especially given the growing demand for non-USD transactions. According to a recent report, stablecoins currently account for just 0.2% of the total value of global e-commerce transactions, suggesting a huge growth opportunity for non-USD stablecoins, especially since 83% of countries do not use the USD as an official or secondary reserve currency and around 40% of international transactions take place in currencies other than the USD.

The scarcity of non-USD stablecoins is currently a major barrier to widespread adoption, with stablecoins such as Tether (USDT) and USD Coin (USDC) largely pegged to the USD. There is a push to develop stablecoins backed by other currencies such as the Hong Kong dollar to support cross-border transactions and facilitate international trade.

On a more positive note, with benefits such as better programmability and transparency, stablecoins can replace traditional payment methods, creating cost efficiencies and speedy transaction processing. However, regulatory challenges and increased merchant adoption still need to be addressed to mainstream stablecoins.