Report: Stablecoins have evolved into a universal digital dollar tool, and non-cryptocurrency economic activities have emerged

Castle Island Ventures released a stablecoin report, first showing the growth of stablecoin use from an on-chain perspective, whether in monthly active addresses, total supply or settlement value. In particular, the new transaction value estimates show that stablecoins compete with existing transfer networks as a settlement medium of significance, while avoiding the overestimation problem that has plagued on-chain data in the past. The survey results overturn the common view that stablecoins are only used as a speculative trading tool for crypto assets. 47% of the crypto users surveyed cited saving dollars as the goal of using stablecoins, 43% mentioned efficient currency conversion, and 39% said it was used for income generation. Although visiting crypto exchanges remains the top use case for respondents, other non-crypto ordinary economic activities have also emerged. When asked about stablecoin activities in the non-crypto field, the most common use is currency substitution (69%), followed by payment for goods and services (39%), and cross-border payments (39%). Clearly, stablecoins have evolved from simple transaction collateral to a universal digital dollar tool, especially in the countries surveyed. In addition, the vast majority (about 99%) of stablecoins are pegged to the US dollar. Discussions about stablecoin regulation in the U.S. cannot ignore the fact that individuals and businesses in many emerging markets rely on these networks for savings, cross-border payments, remittances, and corporate cash management. In almost all of the countries or regions surveyed, these stablecoins are increasingly becoming an alternative to U.S. dollar banks, where the service is scarce. Among the countries surveyed, Nigerian users have the highest affinity for stablecoins.