According to Chainalysis, stablecoin usage in America began declining in 2023 despite overall crypto industry activity. At the same time, global markets, particularly emerging markets, show growth in this sector.

Non-US Markets Lead the Way

Several factors contribute to the robust position of global stablecoin markets. For instance, Circle, the issuer of USDC, notes the growing demand for dollar-denominated assets in countries with unstable local currencies. According to the Federal Reserve, about 45% of all US banknotes are used outside the country, which has only fueled the dollar's global popularity. The emergence of regulatory frameworks such as the Markets in Crypto-Assets Regulation (MiCA) in Europe creates a favorable legal environment for stablecoin projects, while the US struggles to implement similar measures.

Latin America's Booming Crypto Scene

Latin America has become a hotbed for stablecoin usage growth. From July 2023 to June this year, the region attracted about $415 billion in cryptocurrencies, accounting for 9.1% of the global market. Argentina and Brazil lead in this segment, with the bulk of activity centered on centralized exchanges. In Argentina, inflation reached 143% by the end of 2023, driving an increase in stablecoin trading volumes. Venezuela, despite its challenging economic situation, shows growing cryptocurrency use as a means of preserving capital.

Challenges for the US and Future Prospects

While other countries take the lead in stablecoin usage, the US faces the need to adopt new legislative initiatives. In July 2023, the House Financial Services Committee advanced a stablecoin bill that includes anti-money laundering and counter-terrorism financing measures. Without clear legislative frameworks, the US risks losing its position as a global leader in this field. Political forces from both parties recognize the current state as unacceptable, but the question remains as to whether they are ready to take decisive steps to change the situation.

The situation in the global stablecoin market indicates the need for the US to accelerate its actions in cryptocurrency regulation. Even amid global activity and innovation growth, the country must act quickly to maintain its position in the world of digital finance.