A new study from the Bank for International Settlements (BIS) - often referred to as the "central bank of central banks" - shows that Bitcoin and stablecoins like USDT and USDC are increasingly being used during economic crises, especially in countries with high inflation, strict capital controls, or costly and inefficient banking systems.

Key points:

- BIS confirms what many in the crypto community have believed: Bitcoin is not just an investment, but also a “lifeline” in unstable economies.

- People turn to crypto when traditional financial systems collapse or become too expensive.

- Cross-border crypto flows surged from under $7 billion in 2017 to a peak of $800 billion by the end of 2021, then declined during 2022, but have recovered to around $600 billion by Q2 2024.

- Initially, Bitcoin accounted for 80% of cross-border transactions, but now it is below 25%, as stablecoins become increasingly favored for payments and remittances.

- The use of crypto has surged in countries with strict capital controls, as people use it to overcome financial barriers.

- Additionally, as global financial stress rises (for example, the VIX index increases), crypto usage also rises, indicating that even institutional investors and businesses are turning to crypto during periods of instability.