A new study conducted by Visa, Brevan Howard, and Castle Island Ventures shows that stablecoins are increasingly being used for practical purposes such as currency conversion and money transfers.
Key Findings of the Study
The study, titled 'Stablecoins: The Emerging Market Story,' is the first global effort to track real-world usage of stablecoins. Data was collected from 2,500 users in Brazil, Nigeria, Turkey, Indonesia, and India. According to the survey, $2.6 trillion worth of stablecoin transactions have been recorded in 2024, with most attributed to practical applications. Nic Carter of Castle Island Ventures stated, 'This is the first of its kind and I think it’s very revealing of the real-world use of stablecoins, not just for crypto speculation.'
Regional Differences in Usage
The survey was conducted by YouGov between May 29 and June 13, 2024, targeting 500 cryptocurrency users in each of five emerging markets. The findings show that stablecoins are increasingly seen as a 'core application' in the crypto space, offering practical solutions such as currency conversion, remittances, and payment for goods. In Turkey, stablecoins were primarily used to generate returns, while in Nigeria, the primary purpose was to save money in US dollars.
Future Prospects
After filtering out speculative transactions such as arbitrage and intra-exchange transfers, the survey found that stablecoins processed around $3.7 trillion in transactions in 2023. The industry is on track to surpass that figure in 2024, with $2.6 trillion in transactions in the first half of the year alone, for a projected annual total of $5.28 trillion. Despite the overall decline in the crypto market, stablecoin usage has continued to grow: 57% of users have increased their stablecoin usage in the past year and 72% expect this trend to continue.
The study highlights the importance of stablecoins in practical applications, particularly in emerging markets. They provide users with efficient tools for financial operations and savings, making them a crucial element of the modern financial landscape.
Comments