Base Network Eyes Global Domination Through Local Stablecoins

Base Network's Ambitious Stablecoin Play

Coinbase's Base network is making a bold move to integrate stablecoins pegged to a wide range of global currencies. Jesse Pollak, a Coinbase executive, has announced a goal to have every single world currency represented on Base by the end of next year. This initiative aims to significantly expand Base's reach and utility.

Why Local Currencies?

Base currently hosts over $5.3 billion in crypto across 700+ applications. The platform believes leveraging local currencies can unlock significant growth potential. Here's why:

• Onboarding New Users: Using familiar currencies, rather than forcing users to adapt to dollars, Bitcoin, or Ether, can make crypto more accessible and less intimidating. Users can access familiar financial products but with the added benefits of crypto.
• Breaking Down Cross-Border Barriers: Integrating diverse currencies on Base simplifies international transactions, facilitates remittances, and streamlines foreign exchange between businesses. This creates a more accessible and efficient global economy.
• Promoting Local Sovereignty: Stablecoins linked to local currencies can strengthen a country's financial position and help grow its economy.

The Current Stablecoin Landscape

While the stablecoin market is booming, with a 45% increase in market value this year and 73% year-over-year, it's heavily dominated by the US dollar. Of the $299 billion in circulation, $298 billion are USD-pegged. Base aims to address this imbalance by bringing in currencies like the Euro, Yen, and even the Nigerian Naira.

Base's Progress and Future Plans

Base already supports stablecoins pegged to currencies from Indonesia, Turkey, New Zealand, Brazil, Argentina, the EU, Canada, Nigeria, Kenya, and South Africa. They are adding the Singapore dollar and the Australian dollar soon. To achieve its ambitious goal, Base needs software developers to build these stablecoins and local issuers to adopt them.

Key Takeaways

• Base Network is prioritizing the adoption of stablecoins pegged to diverse global currencies.
• This strategy aims to onboard new users, break down cross-border financial barriers, and promote local currency sovereignty.
• The current stablecoin market is heavily skewed towards the US dollar, presenting a significant opportunity for Base to diversify and expand.