• Stablecoin usage in 2024 surged to $2.62 trillion, expanding into cross-border payments and daily financial activities.
• Emerging markets like Nigeria and Brazil increasingly use stablecoins for savings and remittances, bypassing unreliable banking systems.

Recently, “Stablecoins: The Emerging Market Story” surveys by Visa and others show a significant increase in the use of stablecoins, particularly in industries such as cross-border payments, remittances, and wage distribution.

The global value of stablecoin settlements increased to $2.62 trillion in the first half of 2024, with the amount expected to reach $5.28 trillion by the end of the year.

Stablecoins Emerge as a Reliable Alternative to Traditional Banking in Emerging Markets 

These data demonstrate stablecoin growing impact in the global financial ecosystem, which extends far beyond their original affiliation with cryptocurrency trading. Instead, stablecoin are rapidly being used for ordinary financial transactions in emerging nations, providing millions of people with stability and accessibility.

Brazil, India, Indonesia, Nigeria, and Turkey have all contributed significantly to this expansion. In these places, traditional banking systems frequently fail to meet consumers’ expectations, and stablecoins have developed as a reliable alternative.

For many, stablecoins are seen as a way to avoid volatile local currencies while also providing access to a more reliable store of value.

According to surveys, 47% of respondents use stablecoins to save in dollar-denominated assets, and 43% value the superior currency conversion rates that these digital currencies provide. Furthermore, stablecoins are becoming more popular for cross-border payments, with 39% of users stating this as a main reason for their use.

The adaptability of stablecoins is changing the way individuals manage their cash. Their attraction extends beyond speculative cryptocurrency trading into real-world applications. Tether (USDT), for example, has emerged as one of the most trusted stablecoins, particularly in markets where local currencies are volatile.

This trust is based on USDT’s established liquidity and ability to support frictionless transactions. Users in countries with historically high inflation rates, such as Argentina and Venezuela, are increasingly turning to stablecoins like USDT to preserve their funds from rapid devaluation.

In Nigeria, where access to US dollars through traditional banking is limited, stablecoins provide an efficient alternative for cross-border transactions, allowing consumers to securely hold wealth without relying on local institutions.

Despite these benefits, some economists are concerned about “crypto-dollarization” in some economies. Critics claim that relying heavily on stablecoin risks undermining local currencies and financial institutions. However, this has not lessened the interest in these digital assets.

Stablecoins appeal stems from their speed, efficiency, and accessibility, particularly among people underserved by traditional banking institutions. In fact, 72% of study respondents intend to increase their use of stablecoins in the coming year.

This predicted rise highlights the ongoing transformation in global financial dynamics, with stablecoins playing a more important role.

Meanwhile, CNF has previously reported that Singapore saw nearly $1 billion in stablecoin payments by Q2 2024, highlighting its growing digital asset landscape.