Stablecoins, digital assets pegged to fiat currencies, have witnessed remarkable growth globally, particularly in emerging markets. This growth is driven by several reasons, including their role as a hedge against inflation, a tool for remittances and cross-border trade, and a bridge to financial inclusion. As the Trump administration in the US explores regulations for the crypto industry, stablecoins are already thriving in regions where traditional banking often falls short.
In inflation-ridden economies like Argentina and Venezuela, stablecoins offer a dollar-pegged refuge from depreciating local currencies. They also serve as a cost-effective tool for remittances and cross-border payments in Africa and Central America, and provide a more accessible alternative to traditional USD banking in places like Indonesia. Cornell University Trade Policy professor Eswar Prasad highlights their essential role in providing easy and widespread access to a low-cost digital payment system in low and middle-income economies with underdeveloped financial systems.
Access to the US dollar, widely seen as a global store of value, has been a key driver of stablecoin adoption in emerging markets. Most stablecoins are dollar-pegged, with USDT (USDT) Tether leading the market at nearly 60%, followed by USDC (USDC). Julián Colombo, senior director at Bitso, a Mexican crypto exchange, emphasizes that stablecoins offer a way to bring the benefits of crypto to real-world use cases, not just the potential to get rich off Bitcoin.
Momentum is growing in the United States around stablecoins, with a bipartisan group of senators introducing legislation to establish a regulatory framework. White House AI and crypto czar David Sacks has emphasized that stablecoin regulation is a top priority for the administration. Stablecoin growth has been spectacular, with a staggering $100 billion added to their market value in the past year, reaching a total of $225 billion as of February 2025. USDT still reigns supreme, commanding over 60% of the market, but challengers are rapidly gaining ground.
Stablecoins have gained significant traction in emerging markets as a store of value, a hedge against inflation, and a tool for cross-border transactions. A recent Chainalysis report found that in regions like Africa, Eastern Europe, Latin America, and Asia, stablecoin adoption far outpaces that of Bitcoin, accounting for nearly half of all crypto transactions
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