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Why the Dollar's Stablecoin Update is Inevitable | Jeremy Allaire, Circle

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Capital Velocity Fuels USDC Growth

The majority of USDC's current usage is speculative, similar to traditional bank dollars and Fedwire dollars, with about 98% of their activity driven by speculation. As interest rates decline, capital velocity in both speculative and commercial transactions is expected to rise, enhancing the demand for USDC. The growth of USDC will be influenced not only by macroeconomic factors such as interest rates but also by the expansion of its utility within on-chain commerce and finance. This development indicates a direct correlation between USDC's capabilities and its adoption in the market.

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