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In 2024, stablecoins expanded their practical applications beyond the cryptocurrency markets. They are now extensively utilized for international remittances, trade, and settlement in emerging economies.
A collaborative study by Castle Island Ventures, Brevan Howard, and Visa analysts indicates that the adoption of stablecoins outside of crypto markets is on the rise. This growing interest is particularly evident in developing nations.
The research revealed that initially designed for settlement within crypto ecosystems, stablecoins are now being utilized in the broader economy. In nations such as Nigeria, Indonesia, Brazil, Turkey, and India, stablecoins have emerged as an alternative to conventional banking services. They offer access to dollar-pegged assets, mitigate local currency inflation, and simplify international payment processes.
The report highlights that in the first half of 2024, the global transaction volume involving stablecoins surpassed $2.6 trillion. Analysts identified several key reasons for the increasing popularity of this asset class, including:
- secure storage of funds in U.S. dollars;
- rapid cross-border transactions without reliance on traditional banks;
- integration within the DeFi ecosystem.
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The study indicates that the highest demand for stablecoins is found in countries experiencing elevated inflation rates and limited access to stable fiat currencies. Specifically, numerous businesses and individuals in Latin America and Africa are actively utilizing stablecoins for international transactions and cash flow management. This strategy aids in bypassing currency restrictions and lowering remittance expenses.
Furthermore, analysts observed that in 2024, stablecoins are increasingly being adopted for B2B transactions and payroll purposes. They are particularly favored in regions where local banking systems face challenges in providing cost-effective and timely settlements. Consequently, stablecoins have become a crucial component of the financial infrastructure for enterprises in these regions.
Globally, the study illustrates that stablecoins have transitioned from being instruments for crypto traders and investors to a practical settlement solution in the real economy, creating new avenues for financial inclusion and economic stabilization in countries with rapidly depreciating national currencies.
The research is based on a survey of over 2,500 stablecoin users from Brazil, Nigeria, Turkey, Indonesia, and India, conducted from May 29 to June 13, 2024, via the YouGov platform.
Numerous traditional finance entities are expressing interest in launching their own stablecoins. PayPal and Mercado Libre have already introduced stablecoins, while Sony, Bangko Sentral ng Pilipinas, and DMM Group are expected to follow suit soon. As of July 2024, the stablecoin market reached $164 billion, with more than 60% of countries globally having established regulatory frameworks for stablecoin usage.
Сообщение Stablecoins are Popular in Developing Countries for Payments and Transfers появились сначала на CoinsPaid Media.
