Stablecoin issues Circle has published an update, entitled State of the USDC Economy.
A new internet financial system is emerging, according to Circle.
Thanks to the power of USDC, blockchain networks, and some of the world’s best developers and technology companies, the financial system is “being upgraded,” Circle CEO Jeremy Allaire explains.
In a blog post, Circle claims that the new financial system “is faster, easier, and safer, making money open for all.”
Circle points out that during the past decade, the rise of blockchain technology “has fueled a convergence of the internet and global finance.”
According to Circle, this convergence is delivering “a software upgrade for the financial system that is nothing short of transformational.”
This is what inspired Circle’s founding in 2013.
Their focus has been infusing “the core elements of open internet software into the world of money.”
Their mission is to use the internet’s openness and scale “to raise global economic prosperity through the frictionless exchange of value – building what we believe is an emerging and new internet financial system.”
The team at Circle added that software is “poised to eat the world of finance, just as it evolved many legacy industries a generation ago.”
By making communications, entertainment, and other business activities faster, cheaper, and easier to access, costs dropped, barriers fell, and innovation flourished.
They see the accelerating migration of commerce “to the blockchain as the next wave of this decades-long trend of digital transformation, with a social and economic impact potentially larger than that unleashed by the original internet in the 1990s and early 2000s.”
Circle also noted that when we consider that from 2000-2020, internet usage grew from less than 7% of the world’s population to 60%.
As blockchain opens up aspects of traditional finance that “have long been closed, they anticipate a similar growth trajectory for blockchain-based commerce.”
In the coming years, they expect millions of businesses and billions of people “to begin using this new, open Web3 internet layer to transact trillions of dollars in value.”
Open money is a big idea, “comprising economic, technical, and philosophical principles rooted in the internet’s design of openness and interoperability.”
By bringing the marginal cost of data dissemination to zero, the web has “made the sum of human knowledge accessible to all. By making it easy for developers and creators to build, it enabled a rich ecosystem of sites and apps.”
Yet the project of the internet “remains incomplete, because even though data moves around the world securely, instantly, and for free, the monetary superhighway on the internet is still being paved.”
Everything Circle does today is reportedly focused “on building and accelerating this internet financial system.”
As the report from Circle explains, it all starts with their efforts “to build USDC into the largest, most widely-used stablecoin network in the world.”
Through USDC, they are empowering “almost anyone, anywhere, with the ability to access and use dollars on the internet.”
And they are turning USDC into “an open platform for companies and developers to build a new wave of apps that could rival and reshape today’s dominant internet and financial platforms.”
Last year marked a major turning point “for the future of blockchain-based, internet native finance.”
Bad actors began to bear the full weight of their nefarious activity, frauds were uncovered, yet the underlying technology matured, and mainstream businesses deepened their involvement with technologies like USDC.
As noted in the update, payment companies and merchant settlement firms are now using USDC to solve real-world pain points.
Blockchain-based credit markets are “using USDC to support real economic activity around the world.”
Fintechs and neobanks that were born on the internet “are turning to USDC as a means of moving dollars at the speed of internet commerce.”
Remittance companies and non-governmental organizations (NGOs) are “building with USDC to tackle the hard problem of moving value quickly and fairly to people who need it.”
Jeremy Allaire concluded that “while it is still early, there are unmistakable signs that USDC and the broader ecosystem are poised to reach escape velocity – unleashing the power of open money around the world.”