Commissions that are too high – Coinbase wants to promoteadoption of theUSD Coin (USDC) beyond US borders, by waiving commission fees for transactions involving currencies other than the US dollar, when buying or selling the stablecoin.
Stronger USDC adoption in the US
The key to growth is to seduce beyond the borders of Uncle Sam. In a post from October 20, Coinbase has provided explanations about the dynamics ofUSD Coin Adoption in the United States and other countries.
The crypto exchange points out that the adoption of the stablecoin “has been more conservative outside the United States”. Markets would buy three times more USD Coin in US dollars than with a currency other than the greenback.
According to Coinbase, this difference is due to conversion fees that users residing outside the United States must pay to convert their local currency into USD Coin. These costs would thus constitute a impediment to wider adoption from stablecoin to international.
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Coinbase: low commission fees for the stablecoin
In order to accelerate this adoption, Coinbase claims that“global parity for all users” turns out to be necessary. In this context, the crypto exchange will only charge no commission fees when buying or selling USDC on its platform, it does not matter which fiat currency will be used for the transaction.
This support from Coinbase for the USD Coin makes perfect sense since, in 2018, the company partnered with Circle to create the Center Consortium to develop the stablecoin.
This waiver of fees commission should effectively encourage Coinbase users who reside outside the United States to purchase USD Coin. On paper, it provides additional leverage for the stablecoin which appears to be on track to overtake its main competitor, Tether (USDT).
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