Report: Stablecoins have evolved into a universal digital dollar tool, non-crypto regular economic activities are emerging

According to Golden Finance, Castle Island Ventures released a report titled "Stablecoins: The Emerging Market Story", which first shows the growth of stablecoin usage from an on-chain perspective, whether it's monthly active addresses, total supply or settled value.

Especially, new transaction value estimates indicate that stablecoins serve as a significant settlement medium competing with existing transfer networks while avoiding the overestimation issues that have plagued on-chain data in the past.

The survey results debunked the common view that stablecoins are only used as speculative tools for crypto assets. 47% of surveyed crypto users use dollar savings as their goal for using stablecoins; 43% mentioned efficient currency conversion; and 39% said they use them for yield generation. Although visiting crypto exchanges remains the primary use case among respondents, other non-crypto regular economic activities have also emerged.

When asked about non-crypto related stablecoin activities, the most common uses were currency substitution (69%), followed by payment for goods and services (39%), and cross-border payments (39%).

Clearly, stablecoins have evolved from simple trading collateral into a universal digital dollar tool especially in surveyed countries. Moreover, nearly all (about 99%) of these coins are pegged to USD. Discussions about US regulation of Stablecoin cannot overlook how individuals and businesses in many emerging markets rely on these networks for savings, cross-border payments remittances and corporate cash management.

In almost all surveyed countries or regions these coins are increasingly becoming alternatives to USD banks due to scarcity of such services in those areas. Amongst respondents Nigeria had highest affinity towards Stablecoins.