Stablecoins play an important role in the ecosystem of Web3 and cryptocurrencies, ensuring the implementation of transactions between participants on a global level. Let's look at several potential applications of stablecoins.
International Remittances
The international remittances market represents a significant share of financial flows. According to the International Organization for Migration, private remittance flows reached $905 billion in 2024, with around $685 billion sent to low- and middle-income countries. This growth is attributed to the increasing number of remittance service providers and access to technology. A recent study showed that in Latin America, $2.5 billion was sent using stablecoins in 2022, and this figure rose to over $4 billion by 2024.
Payments
Stablecoins are also widely used in the payments sector. Their use helps to avoid high fees associated with traditional methods and ensures immediate transaction execution. For example, Stripe partnered with the Remote platform to offer stablecoins as a payment option for workers in nearly seventy countries, contributing to an increase in stablecoin transaction volumes.
Access to DeFi Services
Stablecoins play a crucial role in decentralized finance (DeFi). They allow users to access financial services without central administration. Since DeFi protocols typically use yield to attract users, stablecoins provide more predictable returns, which is particularly important for those looking to reduce local currency volatility.
Stablecoins are becoming essential tools in the finance sector, offering new opportunities for conducting international remittances, making payments, and accessing DeFi services. However, potential risks also warrant careful consideration and awareness.
