Stablecoins Revolutionize Cross-Border Payments
Global trade is booming, but traditional payment systems are lagging behind. They’re slow, costly, and often inaccessible. Businesses and individuals face high fees and long delays when transferring money internationally.
Before cryptocurrencies,especially stablecoins,people relied on outdated systems. These systems caused payment delays, high fees, and liquidity issues.For instance,SWIFT,a global financial network,is criticized for its inefficiency. While 66% of SWIFT transactions settle within 24 hours, others can take up to a month.Fees include sending, receiving, and intermediary bank charges.
Even modern fintech platforms like Wise and PayPal depend on traditional networks. As cross-border settlements grow—reaching $190.1 trillion in 2023 and expected to hit $290 trillion by 2030—these issues become more pressing.
Stablecoins,like Tether (USDT),offer a solution. They’re cryptocurrencies tied to fiat currencies, operating 24/7 without middlemen. USDT’s market cap grew from $4.6 billion in 2020 to over $142 billion. On-chain liquidity providers,like MANSA,enhance this by ensuring fast,seamless transactions.
Such as, a Nigerian business receiving payments from Europe can use USDT and MANSA’s liquidity to instantly convert funds into naira, avoiding multiple conversions and fees.
Stablecoins and on-chain liquidity are transforming global payments, offering real-time, low-cost solutions for businesses and individuals worldwide.
Stablecoins Revolutionize Global Payments for Underserved Markets
Stablecoins are transforming the way we handle money, especially in underserved regions. These digital currencies offer faster and cheaper transactions compared to traditional banking systems.
For instance, Brazil imported $12.9 billion worth of crypto in the first nine months of 2024, a 60.7% rise from the previous year. stablecoins made up nearly 70% of these transactions. This trend shows that people in emerging markets prefer stable, on-chain payments over traditional banking.
Stablecoins reduce transaction costs and delays. They also help underserved regions access financial services. Policymakers shoudl see stablecoins as a solution to improve global payments.
Stablecoins are not meant to replace traditional banks.Instead, they aim to enhance them. Financial institutions and businesses are already integrating stablecoins into their payment systems. Such as, Wise gained access to Japan’s bank payment clearing network, Zengin, last year. This move helped Wise cut cross-border transaction fees by removing intermediary banks.
The shift to stablecoins is not just a trend. It’s a response to the growing demand for obvious, low-cost, and seamless global transactions. As on-chain liquidity grows, the reliance on outdated banking systems may decline.