Non-USD stablecoins may boost global e-commerce adoption

A report by Quinlan Associates and blockchain developer IDA suggests that non-USD stablecoins could significantly boost cryptocurrency adoption, particularly in global online commerce.

Currently, stablecoins and cryptocurrencies account for just 0.2% of global e-commerce transaction value.

The report, released on November 27, identifies the scarcity of stablecoins pegged to currencies other than the U.S. dollar as a major barrier to adoption.

It emphasises that “83% of countries worldwide do not use the USD as their official or secondary currency, and ~40% of international payments are conducted in non-USD currencies,” highlighting the need for more diversified stablecoin options.

Stablecoins currently represent $200 billion in market capitalisation, with USD-backed coins like Tether’s USDt (CRYPTO:USDT) and Circle’s USD Coin dominating the market.

Tether’s USDt accounts for $130 billion, while USD Coin holds $40 billion, according to CoinMarketCap.

The report also cites regulatory uncertainty as a key hurdle, with 81% of merchants hesitant to adopt digital assets due to unclear regulations.

Despite these challenges, stablecoins offer benefits such as cost efficiency, transparency, and faster transaction processing compared to traditional financial systems.

Addressing these gaps, IDA plans to launch a stablecoin pegged to the Hong Kong dollar to facilitate payments between Hong Kong and global markets.

This initiative reflects the growing demand for non-USD options in international commerce.

The U.S. Treasury has noted that stablecoin growth has increased demand for short-term Treasury securities.

Legislative discussions are progressing, with former U.S. Senator Pat Toomey predicting advancements in stablecoin regulation by 2025.