CandleFocus

Nigeria is undergoing a ‘real crypto dollarization event’: Nic Carter

Author: Content Editor
The market capitalization of stablecoins is steadily increasing while the rest of the crypto market trades sideways. A survey conducted by Castle Island Ventures, Artemis, Visa, and Brevan Howard Digital looked into the prevalence of stablecoin usage in emerging markets such as Nigeria, India, Turkey, Indonesia, and Brazil. The survey revealed that stablecoins are not only used for speculative trading, but also for saving in dollars, efficient currency conversion, and yield generation. The findings suggest that stablecoins are being used for non-crypto economic activities as well. Nic Carter of Castle Island Ventures plans to present the survey findings to lawmakers in Washington DC, where there is increasing interest in regulating stablecoins. The survey also revealed that Nigerians use stablecoins the most frequently and have the highest knowledge of stablecoins, indicating a potential crypto dollarization event happening in Nigeria. However, there is currently no regulatory framework for stablecoin issuers, and interest-bearing stablecoins are issued overseas due to regulatory limitations in the US. Overall, stablecoins offer access to US dollar exposure for users in emerging markets but present regulatory challenges.

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