Coinbase, one of the largest cryptocurrency exchanges in the United States, has decided to waive commission fees when buying or selling USDC with any fiat currency. This is intended to encourage more people to use USDC, a stablecoin issued by Circle and backed by the US dollar.
The announcement was made on the exchange’s blog on Thursday, and it states that the new policy will be implemented immediately.
According to the official announcement, “high fees for exchanging local currencies for USDC have long been a significant barrier to wider adoption. The way to correct this, and accelerate the adoption of USDC internationally, is by establishing global parity for all users.”
Stablecoins are growing in popularity, with USDC now the second largest stablecoin after Tether. Overall, it is the fourth largest cryptocurrency.
Coinbase’s decision to promote USDC adoption could not have come at a better time. With inflation rates skyrocketing in every region and the global economy facing severe challenges, many individuals and businesses have recently been forced to switch from fiat currencies to more reliable ones, such as the USDC.
Coinbase also claims that USDC is “stable by design,” which means that its value does not fluctuate considerably and that it is backed by reserves.
The push for wider adoption of USDC is being driven by inflation as well as the market share report. USDC’s market share has been declining in recent months, ostensibly due to competition from Binance. Binance has been heavily lobbying for the adoption of its BUSD stablecoin rather than USDC. So it’s no surprise that Coinbase is now offering a fee waiver.
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