Yiwu, a small commodity trading hub in China, has become a hotspot for using stablecoins in foreign trade payments.
Stablecoins are considered an important tool for cross-border payments in Yiwu, with cash flow estimated to exceed 10 billion USD in 2023 according to reputable blockchain analysis data.
MAIN CONTENT
Yiwu has become a focal point for using stablecoins for international payments.
Stablecoin transaction volume in Yiwu exceeds 1 billion USD each month, significantly reducing transaction costs.
Sellers in Yiwu have mixed views on the application of stablecoins in payments.
How are stablecoins used in trade transactions in Yiwu?
Experts from Huatai Securities and the blockchain analysis company Chainalysis assert that stablecoins are an important cross-border payment tool in Yiwu, China, with estimated transaction volume exceeding 10 billion USD in 2023.
Yiwu, famous as a global small commodity trading center, has attracted over 3,000 merchants using stablecoins like USDT for payments. According to reports, the trade value through stablecoins in this market exceeds 1 billion USD each month, helping save about 10 million CNY in transaction fees.
Stablecoins play a key role in enhancing convenience and reducing costs in international transactions in Yiwu, providing a clear competitive advantage for merchants.
Director of Research at Huatai Securities, July 2023
What are Yiwu merchants' views on payments using stablecoins?
A field survey shows that the majority of merchants in Yiwu are not well informed or have never heard of stablecoins, reflecting a limitation in awareness of new technology in traditional markets.
In addition, many express concerns about legal compliance and related costs when using stablecoins. Only a small number of merchants appreciate and support the adoption of stablecoins in payments to take advantage of reduced fees and sped-up transactions.
The adoption of stablecoins in international transactions in Yiwu is still in the testing phase, needing more time for the market and stakeholders to adapt and fully assess.
Blockchain finance experts state, July 2023
How do stablecoins help reduce transaction costs and increase efficiency?
According to reported figures, transactions using stablecoins in Yiwu save nearly 10 million CNY in transaction fees each month. This arises from eliminating traditional financial intermediaries and minimizing exchange rate volatility risks.
Payments through stablecoins also allow parties in the value chain to accelerate cross-border payment processing, enhancing transparency and traceability of transactions on modern blockchain platforms.
Real-world examples of the impact of stablecoins in Yiwu
Traditional Stablecoin Index Transaction Costs High intermediary fees, many procedures Savings of about 10 million CNY/month Processing Time A few days to weeks Quick, almost instant Application Scope Limited, dependent on banks Global, continuously growing
Frequently Asked Questions
What are stablecoins and why are they widely used in Yiwu?
Stablecoins are a type of cryptocurrency with stable value, often pegged to fiat currency. In Yiwu, it enables fast payments and significantly reduces international remittance fees.
Do Yiwu merchants agree to use stablecoins?
Many merchants do not fully understand stablecoins or have legal concerns, but a small segment has recognized the benefits and successfully applied them in transactions.
Does using stablecoins ensure safety and legal compliance?
There are still many questions about compliance; clear guidelines and regulations from regulatory authorities are needed to ensure user safety.
How do stablecoins help save costs?
Eliminating intermediaries, reducing transaction fees, and minimizing exchange rate risk helps merchants save millions of CNY in transaction fees each month.
What is the future trend of using stablecoins in foreign trade payments?
According to experts, stablecoins will increasingly be widely applied in international payments due to their speed, low cost, and transparency thanks to blockchain.
Source: https://tintucbitcoin.com/usdt-giao-dich-1-ty-usd-tai-yiwu/
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