The company's experimentation with the well-known stablecoin was divulged in a recent blog post, in which it was disclosed that the testing is being conducted on an Ethereum test network.

Experiment transnational

SAP outlined the primary obstacles they intend to address with their cross-border payment experiments. These obstacles include the high cost of transactions, which can reach up to $50 per transaction, and the sluggish pace of money transmission, which can take up to seven days. The dearth of transaction status transparency was also identified as a problem.

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SAP unveiled a preview of its SAP Digital Currency Hub to demonstrate the future potential of cross-border payments with digital currency. They invited users to register and test this payment method utilizing Circle, the market's second-largest stablecoin, and the Ethereum network.

It is important to note that because this is an experiment, consumers will not be able to use USD coin (USDC) to make actual purchases.

Participants will instead receive a certain quantity of the cryptocurrency and an accompanying invoice, allowing them to experience how SAP envisions affordable and reliable cross-border payments.

The test will be conducted on a blockchain other than Ethereum and without genuine ERC-20 USDC tokens. On the other hand, if there is significant client interest, it is believed that the adoption of Ethereum-based cryptocurrencies would surge, given that a large number of prominent corporations use SAP's services.

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The purpose of this endeavor is to demonstrate the effectiveness and convenience of using USDC for seamless international transactions.

In response to the news, some members of the Twitter community questioned why USDC was chosen instead of USDT.

According to a recent analysis conducted by Kaiko, USD Coin (USDC) has become the most liquid stablecoin on centralized exchanges (CEXs). The study revealed that approximately $38 million in current offers prevent the USDC asset's price from deviating by 0.1%.

Effects on markets

According to CoinMarketCap data, USD coin (USDC) is trading near the middle of its five-day price range. The stablecoin is currently 0.09% below its all-time high and 0.10% above its all-time low, which was $0.999.

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Despite the favorable news regarding the adoption of digital currencies by large corporations, it is important to note that USD Coin's trading volume has decreased recently. Today's volume is lower than the seven-day average, indicating a decline in market activity surrounding the stablecoin.