Usage of Tether’s stablecoin USDT has risen in time zones aligning with major cities in:
- Eastern Europe
- The Middle East, and
- Africa
including sanctioned countries like Russia and Iran, says Bloomberg.
“The trend emerges in data on first-time use of digital wallets containing the stablecoin – also known as $USDT – from consultancy Chainalysis Inc. Activations crest from 9 a.m. to 2 p.m. Coordinated Universal Time, or UTC, equivalent to late morning or afternoon in the likes of Moscow, Tehran, Kigali, and Istanbul,” says Bloomberg.
A Chainalysis spokesperson however stressed that the findings are not conclusive, indicating that the increased activity in certain time zones does not necessarily equate to higher USDT adoption in any of the aforementioned countries.
Nonetheless, Tether CEO, Paolo Ardoino, has indicated that the recent growth of the USDT stablecoin is primarily fueled by its adoption in emerging markets as an alternative to the U.S. dollar rather than by demand for cryptocurrency trading.
[TECH] STABLECOINS | Almost the Entire USDT User Base is Now in Emerging Markets, Says CEO, Tether: Tether CEO, Paolo Ardoino, says that the recent growth of the USDT stablecoin is primarily fueled by its ad.. https://t.co/7Og2v2eRCb via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) April 23, 2024
“Almost the entire user base is (in) emerging markets,” Ardoino said in April 2024, mentioning Turkey, Vietnam, Brazil, Argentina and ‘African countries,’ where dollars can sometimes be in short supply.
According to Ardoino, Tether has just over 300 million users globally.
Speaking to BitKE, Ardoino highlighted remittances as one of the noticeable use case for $USDT in Africa and other emerging markets.
Generally, stablecoins now account for approximately 43% of the total cryptocurrency transaction volume in sub-Saharan Africa, according to the latest 2024 Geography of Cryptocurrency Report by Chainalysis.
🇪🇬 🇩🇿🇲🇦NORTH AFRICA | Out of The Top 10 Largest Crypto Markets in the #MENA region, 3 Are African
Centralized exchanges remain the primary source of crypto inflows across MENA overall, indicating that most users and institutions still prefer traditional crypto platforms.… pic.twitter.com/Jdhn56KNd6
— BitKE (@BitcoinKE) October 7, 2024
According to Chainalysis, Ethiopia has become the continent’s fastest-growing market for retail-sized stablecoin transfers, experiencing a 180% year-over-year (YoY) growth.
🇪🇹REPORT | Stablecoin Transfers Account for 43% of All Crypto Transfers Across Africa, #Ethiopia is Fastest-Growing Market, Says Chainalysis
According to Chainalysis, Ethiopia has become the continent’s fastest-growing market for retail-sized stablecoin transfers, experiencing a… pic.twitter.com/pJMLHAp09T
— BitKE (@BitcoinKE) October 4, 2024
Similar to Ethiopia, Ghana, and South Africa, stablecoins are also a major part of Nigeria’s crypto economy, accounting for approximately 40% of all stablecoin inflows in the region – by far the highest in all of Sub-Saharan Africa.
A separate VISA survey confirmed the growing usage of stablecoins in emerging markets, revealing that the coins are increasingly being used for reasons other than facilitating crypto trades.
REPORT | ‘There is Growing Stablecoin Usage for Non-Crypto Activities in Emerging Markets,’ Says VISA
According to one survey of 2,500 active stablecoin users in India, Indonesia, Nigeria, Turkey, and Brazil, 47% of participants said they primarily use stablecoins to get… pic.twitter.com/6WfZHfJPQa
— BitKE (@BitcoinKE) September 19, 2024
According to the survey of 2,500 active stablecoin users in India, Indonesia, Nigeria, Turkey, and Brazil:
- 47% of participants said they primarily use stablecoins to get dollar-access
- 43% said to get better currency conversion rates, and
- 32% said to send money internationally
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