The Bank for International Settlements (BIS) revealed that cryptocurrencies such as Bitcoin, Ether, and leading stablecoins facilitated approximately $600 billion in cross-border payments during Q2 2024.
The report indicated that speculation and broader global financing trends are the main drivers behind the use of digital assets. Additionally, BIS noted that Circle’s USDC and Tether’s USDT stablecoins, alongside low-value Bitcoin payments, have gained traction in everyday cross-border transactions.
The study highlighted the dual nature of crypto, serving both as an investment vehicle and a transaction mechanism. It showed that data points to a growing overlap between crypto assets used for speculation and traditional financial systems.
Why Digital Assets Are Appealing
Cross-border payments often face challenges such as payment delays, high fees, and regulatory restrictions, prompting the exploration of various solutions. Visa and Mastercard, global messaging network SWIFT, and a project organized by BIS—a consortium of central banks focused on international payments systems—are among those initiatives.
Digital assets present compelling alternatives for cross-border transactions due to their decentralized nature and blockchain foundations, enabling immediate, transparent, and cost-effective transfers. However, the volatility of cryptocurrencies like Bitcoin and Ether, along with concerns about fraud and security, has deterred many financial institutions from widespread adoption.
Progress Toward Mainstream Adoption
In recent years, more companies have incorporated digital assets into their products, making crypto more mainstream than ever. For example, PayPal and Stripe have launched initiatives focused on stablecoins. Meta also announced plans to launch a stablecoin for its global operations.
Despite increased interest, risks still exist. The BIS noted the need for further research to understand the dynamics of global crypto flows and highlighted that policy measures aimed at traditional financial systems may not effectively constrain cross-border crypto activities.
As cryptoassets become more integrated with mainstream finance, policymakers and market participants must consider systemic risks and potential contagion effects between these markets.