Stablecoins like USDT and USDC are transforming the way financial activities are conducted across various countries, especially in hyperinflationary environments.
Stablecoins: Statistics
The annual transaction volume for stablecoins has reached $27.6 trillion, exceeding the figures for companies like Visa and Mastercard. 64% of these transactions cross country borders, emphasizing the importance of stablecoins in international financial exchanges.
Local Stablecoin Economies
Countries such as Argentina, Nigeria, and Turkey actively use stablecoins for saving, spending, and doing business. In Argentina, the volume of stablecoins amounts to $11 billion, which is over 3% of the M1 money supply. Nigeria has stablecoin volumes of $24 billion per year, indicating that local communities are starting to rely on stablecoins instead of traditional currencies.
Risks and Opportunities for Governments
The use of stablecoins is also fraught with risks, including legal uncertainty, threats to sovereignty, and fraud. However, governments are far from adopting a unified approach to regulating this phenomenon. There are both optimistic and pessimistic scenarios for its future development.
Stablecoins continue to reshape the financial landscape, offering citizens alternative means to conduct business and preserve their wealth. The future of stablecoins will depend on how governments adapt their financial systems to these changes.
