Odaily Planet Daily News: The Bank for International Settlements (BIS) recently published a paper titled 'Empirical Analysis of Cross-Border Bitcoin, Ethereum, and Stablecoin Flows,' which delves into the driving factors behind cross-border cryptocurrency flows in 184 countries from 2017 to mid-2024. The study found that the impact of geographical distance and language barriers on cryptocurrency transactions is significantly less than that on traditional financial flows. Global factors such as increased market volatility and widening credit spreads have become important determinants of native crypto assets. The correlation between stablecoins and remittance costs and transaction demand is stronger, particularly in emerging markets and developing economies where traditional financial channel costs are high. Furthermore, capital flow management measures appear to be largely ineffective in curbing these digital transactions, with evidence suggesting that the trading volume of certain crypto assets even increased due to the implementation of these measures. The findings highlight the dual role of crypto assets as speculative investments and trading tools, emphasizing the need for further research to assess their impact on financial inclusion and economic stability.

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