Hundreds of billions of dollars of cross -border cryptocurrency payments flow worldwide, mainly on account of speculative investments, in keeping with the Bank for International Siedlements (bis).
The BIS study published on May eighth, crossed borders with the 2 largest cryptocurrencies Bitcoin (BTC) and Ether (Eth) and the 2 largest stablecoins, USDT (USDT) and USDC (USDC), found a complete of around $ 600 within the second quarter of 2024, the ultimate statement period with the evaluation.
“Our results underline speculative motifs and global financing conditions as essential drivers of the local crypto flows,” said the to.
The cross-border crypto assets flow until the quarter. Source: bis
In the report, nevertheless, stable coins and low Bitcoin transactions also found that practical applications are sometimes controlled as alternatives to traditional transfers. The researchers identified that geographical obstacles compared to standard financial systems have less influence on cryptocurrency transactions.
The speculative crypto activity stays related to “global conditions for the financing of crucial cryptoma markets”, which signals a growing “networking” between cryptocurrencies and the Legacy Financial System, because the researchers stated:
“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 indisputable fact that the variety of investors and the quantity of capital in crypto and decentralized financial resources (Defi) “achieved a critical mass” and presented a threat to the financial stability and global inequality of the assets reported on April 19.
Stablecoin, low values ​​Bitcoin payments which might be 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, reminiscent of high inflation, spurful bilateral cross-border transactions in each unack-together cryptoassets and in stablecoins,” said the to and added:
“Likewise, usually, greater economic activity within the sender and recipient countries is usually 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 revamped 12% of cross -border transactions using the world's largest stable coin.
