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To do this, we’ll be referencing the report . Circle is the team behind the creation and operation of USDC. And, Circle is also the author of the report mentioned earlier. With that, let us dive into the USDC projections for 2024.
It’s time.
The State of the USDC Economy 2024 Report has arrived, bringing new insights and a global perspective on and the internet financial system. The #OpenMoneyEra is bringing greater speed, accessibility, and innovation to the global economy. Read it now:… pic.twitter.com/68XQA1dkFK
— Circle (@circle) January 15, 2024
Projection #1 – Blockchain-Based Commerce to Grow
We start with a preface by Jeremy Allaire, Co-founder and CEO of Circle. Here, Jeremy brings forth the first of USDC projections for 2024. In recent years, software has become an essential part of finance. Coupled with blockchain, software is set to increase its influence. As a result, blockchain-based commerce will grow as well.
With this, USDC is primed to take advantage of this trend. Indeed, the idea of “Open money” is still new. Jeremy compares this with data on the internet. Data moves quickly and widely with the internet. But, that’s not the same case with money. Hence, there’s a lot of room to grow, to make the top stablecoin network. This brings us to the second projection.
Projection #2 – USDC to Become the Top Stablecoin Network
Circle hopes to make USDC the top stablecoin network. That’s the second of USDC projections. This is due to a few reasons:
- USD is widely used in trade. It serves as a medium of exchange for more than 75% of all major worldwide regions. Furthermore, more than two-thirds of dollars are outside of the United States.
- Blockchain use cases are growing. Many companies are embracing Web 3 technology.
- Regulators in many countries are embracing stablecoins. USDC is set to benefit from this. Some of these regulators include those from Singapore, Japan, and Hong Kong. Regulatory clarity is also improving in the USA, UK, the UAE, and Europe as well.
- USDC integrates well with blockchain. USDC is interoperable with many blockchain networks. As of now, it’s available in over 190 countries and used by over 3 million active wallets.
From the above points, we can see that USDC will likely see tailwinds into 2024. But, how does USDC set itself apart from its competitors? Let’s check this out in the next projection.
Projection #3 – Improving Developer Experience
In #3 of USDC projections, Circle commits to improving the blockchain developer experience. To do this, Circle provides tools like programmable wallets and smart contract templates. Other services are available as well.
These enable the average developer to integrate USDC into popular blockchain networks and Decentralized Applications (dApps) easily. With this, we can expect USDC to be widely used in more blockchain networks in 2024.
Projection #4 – USDC to Widen Its Reach
So far, we’ve been looking at what’s going well for USDC. But, what benefits do stablecoins like USDC provide? Well, let’s start with the below:
- Remittances. Many workers in foreign countries send money back home. With USDC, they can do so with lower fees.
- Cross-Border B2B Payments. Businesses need to pay other parties and transfer money as well. With USDC, they can do so with less friction and reduce costs.
- Foreign Exchange. FX trading is common within countries. With USDC and blockchain, this can be done with lower costs and risks.
As economies progress, so will the above three activities. Hence, there will be a growing demand for USDC. The demand for stablecoins extends beyond the USD. To further increase its reach, USDC has announced the launch of Euro Coin (EURC). This will be the stablecoin that’s pegged to the Euro. Similar to how USDC is pegged to the USD.
By now, you should be able to see the benefits that USDC can bring. In terms of numbers, we can see that in the next projection as well.
Projection #5 – USDC Is Evolving Into “General-Purpose” Money
In the last of USDC projections for 2024, USDC is moving towards being “General-Purpose” money. What do we mean by this?
Initially, USDC’s purpose was to serve as a digital store of value and a form of payment. Also, it serves as a stablecoin for crypto investors. That was useful since banks were not open 24/7. On the other hand, crypto doesn’t sleep. Hence, USDC proved to be useful.
Today, USDC still serves the above purposes. But in recent years, USDC has evolved beyond speculative use cases on-chain. From the data within the report, we can see that:
- There is a reduction of USDC use in speculative trading.
- The use of USDC in crypto trading is less than the use of fiat in traditional trading.
- There is less leverage for payment stablecoins in crypto than fiat in traditional finance.
- The use of USDC for leverage is declining over time.
- There is an increase in the use of USDC for tangible economic value transfers.
Despite the above data, the use of USDC is growing worldwide. This means that USDC is moving towards stronger use cases. In 2024, we will likely see this trend continue. If so, USDC will continue to serve greater purposes beyond crypto trading. It will move towards becoming real money in the future.
To conclude, we’ll be expecting huge developments from USDC in 2024. Indeed, Circle has been building partnerships left, right and center. By being an effective bridge between blockchain and traditional finance, USDC will extend its reach to more people worldwide.
