Vietnamese crypto remittance platform Cash2VN has launched support for the USD-backed stablecoin USDC.
Cash2VN was launched in 2015 as a service by Vietnam’s oldest Bitcoin exchange BitcoinVN in order to facilitate fast & simple transfers to Vietnam via the modern tools of cryptocurrency.
USDC is issued by regulated financial institutions, and backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars. USDC is governed by Centre, a membership-based consortium which was established as a cooperation between two of North America’s leading cryptocurrency exchange & OTC platforms, Coinbase & Circle.
Bao Phuong Nguyen, who heads one of Vietnam’s leading OTC desks at BitcoinVN:
“While up until about half a year ago USDT was completely dominating the USD-stablecoin market in South East Asia; we started to notice some uptick in traction and demand for USDC since a few months.
While in terms of volume still far behind USDT for the time being, USDC has at this point established itself as solid number 2 in the marketplace with demand and volume increasing steadily over the past couple of months.”
One of the major challenges ahead for USDC (and other ERC20-based stablecoins) remains the rapidly rising transaction costs on the Ethereum network.
Cash2VN Creator Alex Winter:
“Especially for a service like ours where cheap and fast transfers of value across borders are of high importance, the behaviour of the Ethereum network seems long-term not viable for these types of use cases.
Our service is already able to process SLP-based USDT transactions with basically no transaction fees and it would be quite simple for us to add an USDC_SLP version to our service.”
USDC is planning to tackle this issue by rolling out its stablecoin on additional Blockchain implementations over the course of 2021.
