Coinbase-backed USDC stablecoin offerings have grown by 250% since the beginning of 2020, including an 80% increase in the last two months alone.
After starting the year with a market value of almost $ 520 million, USDC is now in 16th place in cryptocurrencies with a capital of $ 1.86 billion, ahead of all other stable currencies except Tether (USDT) with $ 14.5 billion with at least four … time.
Meanwhile, other stack coins (mainly related to $ 1) have also had significant gains this year, with DAI and Binance USD up 970% and 800% respectively in 2020.
Historical market capsules on USDC, HUSD, PAX, BUSD and DAI: CoinMetrics
In any case, the race for tough tokens continues to consolidate market share before financial institutions and large companies compete with their own tokens.
On 9 September, Fnality – a stable foreign exchange project spanning 13 global banks led by UBS Group – predicted that it would receive government approval for its UtilitySettlement Coin initiative by the second quarter of 2021.
The Fnality project has been under development for over five years and aims to build a network of tokens for US dollars, Japanese yen, euros, Canadian dollars and British pounds.
Current stablecoins may also face stiff competition from Facebook’s rival Libra, which despite early opposition from regulators seems to be gaining popularity among lawmakers.
In July, the Office of the Comptroller of the United States (OCC) gave federal banks permission to have cryptocurrency assets, and opened the door to widespread use of stable coins.
The central bank’s digital currencies also threaten China, the United States and Europe, and may one day eliminate the demand for stable digital currencies. On 10 September, Christine Lagarde, President of the European Central Bank, announced that the European Central Bank will soon decide whether the region needs a digital euro:
“The Eurosystem has not yet taken a decision on the introduction of the digital euro. However, like many other central banks around the world, we study the benefits, risks and operational challenges associated with this. ”
In May, Frick Bank in Liechtenstein began accepting US dollar deposits.