Hundreds of billions of dollars of cross -border cryptocurrency payments flow worldwide, that are mainly because of speculative investments, as may be seen from a report that has recently been given by the Bank for International Siedlements (to).
The BIS study published on May eighth, crossed borders, was found using the 2 largest cryptocurrencies Bitcoin (BTC) and Ether (Eth) and the 2 largest stable coins, USDT (USDT) and USDC (USDC), a complete of about $ 600 within the second quarter of 2024, the ultimate commentary that was set with evaluation Observation period.
“Our results emphasize speculative motifs and global financing conditions as vital drivers of the local crypto flows,” said the to.
The cross-border crypto assets flow until the quarter. Source: bis
However, the report stated that stable coins and low Bitcoin transactions are sometimes driven by practical applications, especially alternatives to traditional transfers. The researchers identified that geographical barriers have less influence on cryptocurrency transactions in comparison with traditional financial systems.
The speculative crypto activity stays related to “global conditions for the financing of crucial cryptoma markets”, which signals growing “networking” between cryptocurrencies and the Legacy Financial System, said the researchers and added:
“At the identical time, we discover that closer global financing conditions, that are known, are related to reduced rivers. This indicates increasing networking between cryptoassets as speculative assets and mainstream financing.”
In addition, crypto-specific risks and increased public awareness significantly influence crypto investment flows and increase their role as speculative assets, so.
The results were published almost a month after the incontrovertible fact that the variety of investors and the quantity of capital in crypto and decentralized funds (Defi) had “achieved a critical mass” and presented a threat to the financial stability and global inequality of the assets, Cointelegraph reported on April 19.
Stablecoin, low values ​​Bitcoin payments which are powered by Fiat inflation and high transmission costs
In addition to speculative investment tools, stable coins and Bitcoin are also used as a “transaction medium”.
“Higher opportunities for using Fiat currencies, comparable to high inflation, spurful bilateral cross-border transactions in each unack-together cryptoassets and in stablecoins,” said the to and added:
“Likewise, normally, greater economic activity within the sender and recipient countries is commonly related to increased crypto flows.”
High transfer fees burdened by traditional financial institutions strengthen the crypto introduction to international money transfers, especially from industrialized countries to emerging countries.
The United States and Great Britain accounted for cumulative 20% of cross -border payments with Bitcoin and USDC and almost 30% with ETH.
At USDT, Russia and Turkey remodeled 12% of cross -border transactions using the world's largest stable coin.
